12 Best Booming Stocks to Buy Now According to Hedge Funds
In this piece, we will take a look at the 12 best booming stocks to buy now according to hedge funds. For more best booming stocks, head over to 5 Best Booming Stocks to Buy Now According to Hedge Funds.
Stock returns have perhaps been one of the most critical factors that determine a company’s market share. If not the best year of returns, 2023 did see a lot of major tech companies rise to new highs, thanks to the AI boom. The biggest news so far of the year was in May when NVIDIA Corporation (NASDAQ:NVDA) hit $1 trillion in market capitalization and since then it has continued to rise and at the moment it has $1.12 trillion in market capitalization. The semiconductor manufacturing giant topped the list of 12 best stocks that had the highest returns this year as NVIDIA Corporation (NASDAQ:NVDA) returns stood at more than 200%. With an additional recent stock buyback authorization of $25 billion, Nvidia is on track to offer higher value to its shareholders as it will raise the company’s stock price.
Amazon.com, Inc. (NASDAQ:AMZN), Meta Platforms, Inc. (NASDAQ:META) and Alphabet Inc. (NASDAQ:GOOG) also performed high above expectations as their average return stood at 86%. Due to the continuous rollout of artificial intelligence and other technologies, these three big firms are poised to continue their high stock returns.
"Investments that we’ve made over the years in AI, including the billions of dollars we’ve spent on AI infrastructure are clearly paying-off across our ranking and recommendation systems and improving engagement and monetization," Mark Zuckerberg commented during Meta Platforms, Inc. (NASDAQ:META) Q2 2023 earnings call.
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To date, the NASDAQ Composite has appreciated by roughly 29%, while the NASDAQ 100 index is also up 38% since January to date.
The surge in stock returns has also impacted the wealth of the companies’ higher executives in positive terms. For instance, Tesla, Inc. (NASDAQ:TSLA) Chief Executive Elon Musk wealth stands at roughly $259.9 billion as of Oct. 6, according to Forbes, making him the richest person in the world. His EV manufacturer Tesla, Inc. (NASDAQ:TSLA) shares gained 112% this year to date even though the company produced 430,488 vehicles in the recent quarter, down from 479,700 in the prior quarter. Also, the EV manufacturing giant cut the Model 3 and Model Y vehicles’ prices in the United States to boost its sales.
In our list of the best booming stocks so far this year, you will find stocks from a diverse range of sectors and industries. For example, the Connecticut-based Booking Holdings Inc. (NASDAQ:BKNG) topped the list with a 51.17% share return till date this year. With a market capitalization of more than $100 billion, its revenues in 2022 surged roughly 56% from 2021.
In the cybersecurity sector, Palo Alto Networks, Inc. (NASDAQ:PANW) is leading the list as its shares surged more than 69% this year till date.
S&P500 index is also performing well this year with about 20.4% return from a year earlier and appreciating by roughly 12% to date in 2023.
“Analysts think S&P 500 companies will post 12.2% profit growth in 2024. That's actually up from the 11.9% profit growth for the year they were calling for in June,” according to a new report from FactSet's John Butters
Our Methodology
To compile the list, we chose the top 472 stocks that returned more than 50% in 2023 to date. We then picked 12 of these stocks with the highest number of hedge fund investors.
Best Booming Stocks to Buy Now According to Hedge Funds
12. Shopify Inc. (NYSE:SHOP)
Number of Hedge Fund Holders: 74
Share Price Gains Year to Date: 51.48%
A Canadian e-commerce firm, Shopify Inc. (NYSE:SHOP) is up 51% year to date. Currently, the stock is trading at $53.65 on the New York Stock Exchange. The company's second quarter revenue in 2023 jumped 31%.
At the end of Q2 this year, Shopify Inc. (NYSE:SHOP) had 74 hedge funds investors out of 910 profiled by Insider Monkey database. The largest shareholder was ARK Investment Management which had 8.9 million shares of the e-commerce firm that were worth around $573.3 million.
Along with Amazon.com, Inc. (NASDAQ:AMZN), Meta Platforms, Inc. (NASDAQ:META) and Alphabet Inc. (NASDAQ:GOOG), Shopify Inc. (NYSE:SHOP) is one of the best booming stocks to buy now according to hedge funds.
11. Booking Holdings Inc. (NASDAQ:BKNG)
Number of Hedge Fund Holders: 78
Share Price Gains Year to Date: 51.17%
Booking Holdings Inc. (NASDAQ:BKNG) is Connecticut-based online travel booking firm which has been in business since 1997. BKNG i sup about 51.17% year to date. Its stock is currently priced at around $3,000 on the Nasdaq. The company's Q2 earnings per share stood at $37.62, while the expectations were $28.84. The total room nights booked in the second quarter surged 9% year-over-year to whopping 268 million room nights and its on track to rise in Q3 as well.
Out of 910 hedge funds profiled by Insider Monkey, there were around 78 hedge funds investors who had invested in Booking Holdings Inc. (NASDAQ:BKNG). Ken Griffin-led Citadel Investment Group was the largest shareholder of Booking Holdings Inc. (NASDAQ:BKNG) which owned around 550,900 shares that are valued at $1.5 billion.
10. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 79
Share Price Gains Year to Date: 112%
Tesla, Inc. (NASDAQ:TSLA) is one of the biggest electric vehicles manufacturers in the world. Based in Austin, Texas, the EV production giant's stock returned 112% this year to date making it the 10th best booming stocks to buy now in our list. Elon Musk-led Tesla, Inc. (NASDAQ:TSLA) reported a record revenue of $25 billion in Q2. It also posted EPS of $0.91, up from the analysts' expectations of $0.82. The EV manufacturer is anticipating to produce 1.8 million vehicles this year. Its shares are currently trading at $261 on the Nasdaq.
Insider Monkey took a look at Tesla, Inc. (NASDAQ:TSLA) hedge funds at the end of Q2 and found out that 79 had invested in the company with Citadel Investment Group the largest stockholder with 63.5 million shares that were worth $16.6 billion at least.
9. Palo Alto Networks, Inc. (NASDAQ:PANW)
Number of Hedge Fund Holders: 83
Share Price Gains Year to Date: 69.44%
The only cybersecurity solutions provider in our list of best booming stocks to buy now, Palo Alto Networks, Inc. (NYSE:PANW) is a Santa Clara, California-based cybersecurity solutions provider globally. Founded in 2005, the company has gained a big market share in a short span. From January till date, its shares returned almost 70% to their shareholders. In its fiscal Q4 2023 earnings call, Palo Alto Networks, Inc. (NYSE:PANW) reported an EPS of $1.44, while expectations were $1.28.
At the end of June 30, Palo Alto Networks, Inc. (NYSE:PANW) had 83 hedge funds investors out of 910 funds tracked by Insider Monkey database. Citadel Investment Group was the largest stockholder with 4.2 million shares that valued around $1.1 billion.
8. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders: 109
Share Price Gains Year to Date: 54.05%
Adobe Inc. (Nasdaq:ADBE) is a San Jose, California-based diversified software firm that provides different cloud-based services globally. The company was founded in 1982 and has been doing an impressive business in the market. This year, its shares returned 54% year to date. In fiscal Q3, Adobe Inc. (Nasdaq:ADBE) reported earnings of $4.09 per share, while analysts expected $3.97.
Insider Monkey took a look at hedge fund portfolios for Adobe Inc. (Nasdaq:ADBE) second quarter of 2023 investments and concluded that 109 had shares in the firm. Citadel Investment Group was Adobe Inc. (Nasdaq:ADBE) largest shareholder which owned about 2 million shares for about $971.9 million.
7. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 112
Share Price Gains Year to Date: 60.68%
Incorporated in 1969, Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the biggest semiconductor firms globally. With a market cap of $173 billion, the California-based firm's shares returned 60.68% year to date. Advanced Micro Devices, Inc. (NASDAQ:AMD) posted EPS of $0.91 against expectations of $0.57 at the end of Q2. In its Q2 earnings call, CEO Lisa Su said that Advanced Micro Devices, Inc. (NASDAQ:AMD) has over 670 AMD-powered cloud instances available publicly and expects the number to rise by 30%.
Insider Monkey took a look at Advanced Micro Devices, Inc. (NASDAQ:AMD) and at the end of Q2, out of 910 profiled hedge funds by the database, the company had 112 hedge fund investors. The largest stockholder was Citadel Investment Group with 14.3 million shares which were valued at $1.63 billion.
6. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 122
Share Price Gains Year to Date: 52.25%
Salesforce, Inc. (NYSE:CRM) provides customer relationship management technology and other enterprise resource planning systems to its international clientele. Headquartered in San Francisco, California, Salesforce, Inc. (NYSE:CRM) EPS was $1.28 for the second quarter, while analysts had predicted $1.9. Revenue for the second quarter was $8.6 billion, up 11% YoY.
Insider Monkey took a look at hedge fund portfolios for Salesforce, Inc. (NYSE:CRM) second quarter of 2023 investments and found out that 122 had a stake in the company. Harris Associates was the firm’s largest shareholder which had roughly 5.1 million shares that valued at about $1.1 billion of Salesforce, Inc. (NYSE:CRM).
Along with Amazon.com, Inc. (NASDAQ:AMZN), Meta Platforms, Inc. (NASDAQ:META) and Alphabet Inc. (NASDAQ:GOOG), Salesforce, Inc. (NYSE:CRM) is one of the best booming stocks to buy now according to hedge funds.
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Disclosure: None. 12 Best Booming Stocks to Buy Now According to Hedge Funds is originally published on Insider Monkey.