10 Best Multibagger Stocks to Buy Now
In this article, we discuss the 10 best multibagger stocks to buy now. To skip the details about our prior multibagger stocks, go to 5 Best Multibagger Stocks to Buy Now.
Multibagger is a term commonly used to describe a stock that has generated returns of over 100%. It was coined by Peter Lynch, former manager of the Magellan Fund at Fidelity Investments. Lynch used the term in his 1988 book, "One Up on Wall Street," in which he discussed his strategies to identify stocks with the potential to be multibaggers or even ten or twenty-baggers.
Prior Multibaggers Still Making Strides
Last year in July, we made a list of the best multibagger stocks which included NVIDIA Corporation (NASDAQ:NVDA), Vertiv Holdings Co (NYSE:VRT), and Royal Caribbean Cruises Ltd. (NYSE:RCL). These three stocks have been moving on an upward trajectory and even after nine months, they continue to make their investors a lot of money.
NVIDIA Corporation (NASDAQ:NVDA) has been topping charts since the rise of generative AI. After a 239% share price return in 2023, the stock has gained 58.20% year-to-date as of April 19. Additionally, the company has experienced a trailing twelve-month EPS growth of 586.45% and sales growth of 125.85%.
With the rise of the AI trend, several companies made efforts to either compete with NVIDIA Corporation (NASDAQ:NVDA) or even tried to end their dependence on the company. However, the firm is not slowing down its progress. On March 18, NVIDIA Corporation (NASDAQ:NVDA) unveiled the Blackwell GPU architecture that is expected to be 2.5 to 5 times more powerful and efficient than its prior H100 and H200 chips. The company’s CEO, Jensen Huang said:
“For three decades we’ve pursued accelerated computing, with the goal of enabling transformative breakthroughs like deep learning and AI… Generative AI is the defining technology of our time. Blackwell is the engine to power this new industrial revolution. Working with the most dynamic companies in the world, we will realize the promise of AI for every industry.”
Vertiv Holdings Co (NYSE:VRT) offers critical digital infrastructure technologies and life cycle services. Data centers like Vertiv Holdings Co (NYSE:VRT) are an important component of the AI revolution and the company stands to benefit significantly from it. At the time of our July 2023 article, the company had gained 184% over the last 12 months and has now recorded TTM gains of over 533%, as of April 19. Moreover, Vertiv Holdings Co (NYSE:VRT) has recorded EPS growth of 82.85% over the last 5 years and nearly 495% over the last year.
On March 19, Vertiv Holdings Co (NYSE:VRT) announced that it joined the NVIDIA Partner Network as a Solution Advisor to provide its liquid cooling technologies for managing AI workloads. The company’s CEO, Giordano Albertazzi said:
“Vertiv has collaborated with NVIDIA in research, development and engineering for multiple years, designing innovative products and solutions that support the deployment of NVIDIA technologies globally.”
He further added:
“We have combined our leadership in power and cooling solutions with NVIDIA’s cutting-edge platforms to help meet the demands of the most compute-intensive applications and support the deployment of AI infrastructure across the globe. Now, we are collaborating to build state-of-the-art liquid cooling solutions for next-gen NVIDIA accelerated data centres powered by GB200 NVL72 systems.”
The Non-AI Stock Cruising Through
Over the last 5 years, Royal Caribbean Cruises Ltd. (NYSE:RCL) faced a lot of macroeconomic challenges but its recovery has been stellar. During the COVID-19 pandemic, the company’s stock price lost over 82% of its value between January 17 and March 20, 2020. Over the next two years, Royal Caribbean Cruises Ltd. (NYSE:RCL) gained over 240% by April 2022, only to decline by 60% by July 2022 due to the aftermath of the Russia-Ukraine war.
Despite all these challenges, Royal Caribbean Cruises Ltd. (NYSE:RCL) has managed to record a sales growth of 57.23% over the last 5 years and an EPS growth of 178.40% over the last 12 months, as of April 19. The company had one of its best years in 2023 and is even more confident for the current year. At its Q4 2023 earnings call, Royal Caribbean Cruises Ltd.’s (NYSE:RCL) CEO, Jason Liberty made the following statements:
“The robust performance in 2023 significantly accelerated our trajectory toward our trifecta goals with EBITDA per APCD and ROIC on the cusp of our targets. We also continued to invest in the future while making significant progress in strengthening the balance sheet toward our targets of investment-grade metrics. The year ended on an incredible note with revenue yields up nearly 18% in the fourth quarter, and 2024 is in the strongest book position in the company's history from both a pricing and volume standpoint. I am incredibly thankful and proud of everyone at the Royal Caribbean Group for executing so well and doing so while achieving strong financial results and propelling our future growth.”
Moreover, analysts are also bullish on Royal Caribbean Cruises Ltd. (NYSE:RCL). Over the past 3 months, the stock has received Buy recommendations from 10 Wall Street analysts. Its average price target of $150.67 represents an upside of 12% from current levels. As of April 19, the stock has returned more than 110% to investors over the past year.
Moving on to 2024, some of the best multibagger stocks to buy include Meta Platforms, Inc. (NASDAQ:META), NVIDIA Corporation (NASDAQ:NVDA), and Uber Technologies, Inc. (NYSE:UBER).
Our Methodology
For this article, we used the Finviz stock screener to identify 20 large to mega-cap stocks with share price returns of over 100% over the last twelve months, as of April 19. We narrowed down our list to 10 stocks that were the most widely held by institutional investors and listed the companies in ascending order of their hedge fund sentiment.
The hedge fund data was taken from Insider Monkey’s database of 933 elite hedge funds. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.
10 Best Multibagger Stocks to Buy Now
10. Royal Caribbean Cruises Ltd. (NYSE:RCL)
Number of Hedge Fund Holders: 54
1-Year Share Price Gain as of April 19: 107.63%
Royal Caribbean Cruises Ltd. (NYSE:RCL) is a cruise company that offers its services under different brands, including Royal Caribbean International, Celebrity Cruises, and Silversea Cruise.
On April 17, Mizuho initiated coverage of Royal Caribbean Cruises Ltd. (NYSE:RCL) with a Buy rating and a $164 price target. The firm believes that the company is in a good position to see incremental demand owing to various factors, including operating new attractions, a wide range of ships, and curating different destinations.
Royal Caribbean Cruises Ltd. (NYSE:RCL) has gained 107.63% in the last twelve months. The company was part of 54 hedge funds’ portfolios in Q4 of 2023 with a total stake value of $2.417 billion. D E Shaw is the largest shareholder in the company and has a position worth $632.386 million, as of December 31, 2023.
Royal Caribbean Cruises Ltd. (NYSE: RCL) has caught the attention of institutional investors and is one of the best multibagger stocks, along with Meta Platforms, Inc. (NASDAQ:META), NVIDIA Corporation (NASDAQ:NVDA), and Uber Technologies, Inc. (NYSE:UBER).
Ariel Investments stated the following regarding Royal Caribbean Cruises Ltd. (NYSE:RCL) in its fourth quarter 2023 investor letter:
“Some holdings in the portfolio advanced considerably this quarter. Global cruise vacation company, Royal Caribbean Cruises Ltd. (NYSE:RCL), advanced on another quarterly earnings beat and subsequent raise in full-year guidance driven by stronger than anticipated consumer demand and solid cost containment. The company continues to experience solid momentum in onboard spend, while 2024 booking trends are significantly ahead of historical ranges at higher pricing. We believe the resiliency of the core cruise consumer in combination with management’s superior operational expertise and revised earnings outlook lays the foundation for RCL to exceed its three-year strategic imperative, the Trifecta Program.”
9. Nu Holdings Ltd. (NYSE:NU)
Number of Hedge Fund Holders: 54
1-Year Share Price Gain as of April 19: 114.31%
Nu Holdings Ltd. (NYSE:NU) is a Brazil-based company that provides a digital banking platform and offers spending, investing, borrowing, protection, and saving solutions. The stock is up by 114.31% over the last twelve months, as of April 19.
In the fourth quarter of 2023, 54 hedge funds had investments in Nu Holdings Ltd. (NYSE:NU), with total positions worth $4.538 billion. With 107.118 million shares worth $892.299 million, Warren Buffett’s Berkshire Hathaway is the top investor in the company as of Q4 of 2023.
According to TipRanks, Nu Holdings Ltd. (NYSE:NU) has a consensus rating of Strong Buy, as per the 3 Wall Street analysts that have covered it over the past three months. The average price target of $12.68 represents an upside of 20.99% from the current levels, as of April 19.
White Falcon Capital Management stated the following regarding Nu Holdings Ltd. (NYSE:NU) in its fourth quarter 2023 investor letter:
“The top 5 positions in the portfolio were: Precious Metals royalty basket, Nu Holdings Ltd. (NYSE:NU), AMD Amazon.com and Converge Technology Services. We often talk about our investment in Nu Holdings but have not presented you with a detailed research report. Our cost base on Nu is about $4 per share while the stock is currently trading for $9 per share. We continue to hold this position and, in the appendix to this letter, we are attaching our thesis on Nu Holdings. We are of the opinion that Nu is a rare company with the powerful combination of substantial market opportunity, an excellent business model, and an outstanding management team.
Nu Holdings is a $40 bn market capitalization company listed on the NYSE that provides digital banking platforms and digital financial services in Brazil, Mexico, Colombia. It offers Nu credit and debit cards; savings solutions, such as Nu Personal Accounts, and a digital account solution that supports all personal finance activities…” (Click here to read the full text)
8. Dell Technologies Inc. (NYSE:DELL)
Number of Hedge Fund Holders: 56
1-Year Share Price Gain as of April 19: 167.64%
Dell Technologies Inc. (NYSE:DELL) is a technology company that offers its products and services through the Infrastructure Solutions Group and Client Solutions Group segments. It is the eighth stock on our list of best multibagger stocks to buy.
On April 19, UBS raised the price target on Dell Technologies Inc. (NYSE:DELL) to $141 from $113 and kept a Buy rating on the shares. The analyst mentioned that the firm maintains that the company’s Infrastructure Solution Group / Server business is likely to benefit from the probable rise of 48% and 21% in global AI-related servers in 2024 and 2025, respectively.
56 hedge funds held positions in Dell Technologies Inc. (NYSE:DELL), with a total stake value of $2.810 billion in the fourth quarter of 2023. This is compared to 53 funds in Q3, with positions worth $1.802 billion. As of Q4 of 2023, Alkeon Capital Management is the top shareholder in the company and has a position worth $382.614 million. The stock is up by 167.64% in the last twelve months, as of April 19.
7. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 62
1-Year Share Price Gain as of April 19: 117.60%
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a provider of cybersecurity solutions. In Q4 of 2023, hedge funds with investments in CrowdStrike Holdings, Inc. (NASDAQ:CRWD) were 62 in the quarter, with positions worth $2.6 billion. Two Sigma Advisors has increased its stake in the company by 29% to 1.4 million shares worth $369.575 million and is the most significant shareholder, as of the fourth quarter of 2023.
On April 17, Rosenblatt analyst Catharine Trebnick maintained her price target on CrowdStrike Holdings, Inc. (NASDAQ:CRWD) at $400 and kept a Buy rating on the shares. The stock has gained over 115% in the last twelve months, as of April 19.
TimesSquare Capital Management stated the following regarding CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in its fourth quarter 2023 investor letter:
“Across the Information Technology universe, we seek companies possessing differentiated capabilities, products, and services. CrowdStrike Holdings, Inc. (NASDAQ:CRWD) provides cloud-delivered protection across endpoints and cloud workloads. Their stock rallied 53% on the heels of solid fiscal third quarter results, with net new annualized recurring revenues accelerating sequentially.”
6. DoorDash, Inc. (NASDAQ:DASH)
Number of Hedge Fund Holders: 64
1-Year Share Price Gain as of April 19: 113.53%
DoorDash, Inc. (NASDAQ:DASH), previously known as Palo Alto Delivery Inc., links up merchants, consumers, and independent contractors through its commerce platform. The company is sixth on our list of best multibagger stocks to buy now and has recorded trailing twelve-month gains of 113.53%, as of April 19.
Over the last three months, 27 Wall Street analysts have covered DoorDash, Inc. (NASDAQ:DASH), and 17 maintain a Buy-equivalent rating on the stock. The average price target of $137.28 implies an upside of 7.94% from the current levels, as of April 19.
In the fourth quarter of 2023, 64 hedge funds held positions in DoorDash, Inc. (NASDAQ:DASH) worth $3 billion. Himension Capital is the most dominant shareholder in the company and has a position worth $545.224 million, as of December 31, 2023.
DoorDash, Inc. (NASDAQ:DASH) joins Meta Platforms, Inc. (NASDAQ:META), NVIDIA Corporation (NASDAQ:NVDA), and Uber Technologies, Inc. (NYSE:UBER) on our list of best multibagger stocks to buy now.
Artisan Partners stated the following regarding DoorDash, Inc. (NASDAQ:DASH) in its first quarter 2024 investor letter:
“During the quarter, we initiated new GardenSM positions in DoorDash, Inc. (NASDAQ:DASH), GoDaddy and Vertiv. DoorDash is a technology-driven marketplace that enables couriers (Dashers) to deliver restaurant and other local orders on-demand to consumers. The company is a market leader in restaurant delivery, a business that continues to gain US market share (with healthy margins) and grow internationally. At the same time, heavy investment in newer businesses has limited company profitability. Most notably, grocery delivery is a largely untapped market due to inventory management challenges (in-person grocery shopping involves a high degree of product substitution). This business unit has been losing money. However, the company believes it has a competitive cost advantage given its existing Dasher network, and continued growth will lead to profitability—something it is not getting credit for by the market. The future near-term profit trajectory from new businesses is unclear, but we view management as very rational with its spending. Either these initiatives will yield additional profitable revenue streams, or they will be deprioritized in the coming years—in both scenarios, we expect solid profit growth over time.”
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Disclosure. None. 10 Best Multibagger Stocks to Buy Now is originally published on Insider Monkey.