In this article, we discuss the 10 best fast growth stocks to buy now.
The stock market has grown incredibly growth-heavy in the past few years as technology stocks register an unprecedented rally that has smashed analyst expectations time and again, gathering pace with each passing day. More than 20% of the benchmark S&P 500 Index is made up of just five big tech companies. The rise of fintech, electric vehicles, and cryptocurrencies also seems inevitable. According to Daniel Ives, a research analyst at Wedbush Securities, Bitcoin will be a mainstream asset class in the future ahead of gold.
Growth investors are already pampered for choice. Big names like Amazon.com, Inc. (NASDAQ:AMZN), Tesla, Inc. (NASDAQ:TSLA), and Apple Inc. (NASDAQ:AAPL) are valued at over $1 trillion, with future outlooks bright, while other major growth stocks like NVIDIA Corporation (NASDAQ:NVDA), among others discussed in detail below, are fast approaching big tech status as well. Growth focused hedge funds are minting billions and a new generation of self-made millionaires is rising at the market.
The influx of retail investors, who prefer investing in high-growth options, particularly since many retail investors are around thirty-years-old and willing to take more risks compared to the older generation, has added a new dynamic to the overall market environment. Coupled with the power of social media platforms like Twitter and Reddit, and stock trading applications like Robinhood, these retail investors are on track to pour over $1 trillion into equities this year, according to investment bank JPMorgan.
Our Methodology
The companies that have the potential to grow fast in the coming months, based on the popularity and viability of the products or services they offer amid the macro economic environment, were selected for the list. In order to provide readers with some context for their investment choices, the business fundamentals and analyst ratings for the stocks were also considered. Hedge fund sentiment was included as a classifier as well. The hedge fund sentiment around each stock was calculated using the data of 867 hedge funds tracked by Insider Monkey.
Photo by Adam Nowakowski on Unsplash
Best Fast Growth Stocks to Buy Now
10. Blink Charging Co. (NASDAQ:BLNK)
Number of Hedge Fund Holders: 6
Blink Charging Co. (NASDAQ:BLNK) makes and sells electric vehicle charging equipment. The stock stands to benefit as the US government extends tax breaks for EV companies and plans to spend over $7 billion on building EV charging stations across the country in the next few years.
Blink Charging Co. (NASDAQ:BLNK) recently posted earnings for the third quarter, reporting a revenue of $6.4 million, up more than 611% compared to the revenue over the same period last year and beating estimates by $1.6 million.
At the end of the third quarter of 2021, 6 hedge funds in the database of Insider Monkey held stakes worth $4 million in Blink Charging Co. (NASDAQ:BLNK).
In addition to Amazon.com, Inc. (NASDAQ:AMZN), Tesla, Inc. (NASDAQ:TSLA), Apple Inc. (NASDAQ:AAPL), and NVIDIA Corporation (NASDAQ:NVDA), Blink Charging Co. (NASDAQ:BLNK) is one of the stocks that growth investors are buying.
9. Aurora Cannabis Inc. (NASDAQ:ACB)
Number of Hedge Fund Holders: 8
Aurora Cannabis Inc. (NASDAQ:ACB) markets cannabis products. Recent introduction of bills on the legalization of marijuana in the US promise to give a huge boost to the company as they leave cannabis reform up the states and remove marijuana as a Schedule I substance.
CIBC analyst John Zamparo recently upgraded Aurora Cannabis Inc. (NASDAQ: ACB) stock to Neutral from Underperform and raised the price target to C$9.25 from C$6.5, noting the firm’s “continued progress towards profitability”.
At the end of the third quarter of 2021, 8 hedge funds in the database of Insider Monkey held stakes worth $53 million in Aurora Cannabis Inc. (NASDAQ: ACB).
8. PubMatic, Inc. (NASDAQ:PUBM)
Number of Hedge Fund Holders: 15
PubMatic, Inc. (NASDAQ:PUBM) operates a cloud platform for real-time advertising transactions. In the wake of the pandemic, enterprise spending on digital advertising has increased manifold and looks set to soar further as a new virus variant rises, giving firms like PubMatic a massive boost.
On November 10, investment advisory Evercore kept an Outperform rating on PubMatic, Inc. (NASDAQ:PUBM) stock and raised the price target to $50 from $44, appreciating the “strong” third quarter earnings beat of the firm and improved guidance.
At the end of the third quarter of 2021, 15 hedge funds in the database of Insider Monkey held stakes worth $33 million in PubMatic, Inc. (NASDAQ:PUBM), up from 10 in the preceding quarter worth $87 million.
7. MicroStrategy Incorporated (NASDAQ:MSTR)
Number of Hedge Fund Holders: 16
MicroStrategy Incorporated (NASDAQ: MSTR) provides analytics software and services. The company has increased investments in cryptocurrencies over the past few months as CEO Michael Saylor says that the coin will be a safer bet than gold in the long-term.
Recent filings show that MicroStrategy Incorporated (NASDAQ: MSTR) purchased over 7,000 BTC in the past few weeks worth $414 million. The firm now holds over 121,000 coins worth more than $3.5 billion.
At the end of the third quarter of 2021, 16 hedge funds in the database of Insider Monkey held stakes worth $181 million in MicroStrategy Incorporated (NASDAQ: MSTR), the same as in the previous quarter worth $91 million.
In its Q1 2021 investor letter, Alger, an asset management firm, highlighted a few stocks and MicroStrategy Incorporated (NASDAQ: MSTR) was one of them. Here is what the fund said:
“MicroStrategy Incorporated was among the top contributors to performance. MicroStrategy is a global leader in enterprise analytics software and services. MicroStrategy’s core software platform provides customers with visualization and reporting capabilities, mobility features and custom applications to help with complex business questions. Today, MicroStrategy has over 4,000 customers worldwide. In August 2020, MicroStrategy decided to make bitcoin its preferred reserve currency. To date, MicroStrategy has purchased over 90,000 bitcoins at an aggregate purchase price of $2.17 bi11 ion and an average price of over $23,985 per bitcoin. Going forward, MicroStrategy plans to use excess cash generated by its core business to purchase additional bitcoin.
Shares of MicroStrategy outperformed in the first quarter due to the appreciation of the company’s bitcoin asset, as the price of bitcoin relative to the U.S. dollar rose materially in the quarter. This bitcoin appreciation was driven by concerns about U.S. dollar inflation as well as other public companies deciding to acquire bitcoin to diversify reserve assets. MicroStrategy is establishing itself as a thought leader in the bitcoin space, and the company hosted an event at its February user conference to help other organizations understand the benefits of bitcoin as a reserve asset. MicroStrategy’s core software business is also benefitting from its status as a leader in the bitcoin space, with the increased public attention aiding MicroStrategy’s recruitment and marketing efforts as the software business continues to transition to a cloud-based subscription model.”
6. The Trade Desk, Inc. (NASDAQ:TTD)
Number of Hedge Fund Holders: 19
The Trade Desk, Inc. (NASDAQ:TTD) is a technology company based in California. The company delivered an impressive earnings beat in the third quarter and the future outlook remains bright as people embrace the “privacy-first” approach to digital advertising, especially in the context of other adtech giants facing court rulings in this regard.
Needham analyst Laura Martin recently kept a Buy rating on The Trade Desk, Inc. (NASDAQ:TTD) stock and raised the price target to $115 from $110, appreciating the data transparency mechanism of the firm compared to peers.
At the end of the third quarter of 2021, 19 hedge funds in the database of Insider Monkey held stakes worth $499 million in The Trade Desk, Inc. (NASDAQ:TTD).
Just like Amazon.com, Inc. (NASDAQ:AMZN), Tesla, Inc. (NASDAQ:TSLA), Apple Inc. (NASDAQ:AAPL), and NVIDIA Corporation (NASDAQ:NVDA), The Trade Desk, Inc. (NASDAQ:TTD) is one of the stocks attracting the attention of growth investors.
In its Q2 2021 investor letter, Richie Capital Group, an asset management firm, highlighted a few stocks and The Trade Desk, Inc. (NASDAQ:TTD) was one of them. Here is what the fund said:
“The Trade Desk (TTD – up 26.3%) – Shares in the programmatic advertising specialist rebounded during the quarter after selling off in Q1. The selloff was part of the previously mentioned market move away from higher priced technology names. The rebound in Q2 was due to Google delaying its phase out of third-party cookies in its Chrome browser to mid to late 2023. This is positive news, but TTD is prepared for the inevitable transition away from cookies. The company has built an industry alternative called UID 2.0 which asks users’ permission to receive targeted ads on websites.
UID 2.0 has gained more traction in the digital ad industry vs competing alternatives with many major publishers and advertisers on board. Additionally, TTD’s business is diversified across numerous channels including video, audio, in-app, native and social. Connected TV is currently their fastest growing business, and cookies are meaningless on that platform as ads are based on first-party data.”
5. Revolve Group, Inc. (NYSE:RVLV)
Number of Hedge Fund Holders: 25
Revolve Group, Inc. (NYSE:RVLV) is an online fashion retailer. The company has developed a rabid fanbase within the young adult section of the society over the past few months and looks set to occupy that place for the foreseeable future as Redditors start noticing the stock as well.
Revolve Group, Inc. (NYSE: RVLV) posted earnings for the third quarter on November 3, reporting earnings per share of $0.22, beating estimates by $0.07. The revenue over the period was $244 million, beating predictions by $29 million.
At the end of the third quarter of 2021, 25 hedge funds in the database of Insider Monkey held stakes worth $229 million in Revolve Group, Inc. (NYSE: RVLV), up from 22 in the preceding quarter worth $211 million.
In its Q1 2021 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Revolve Group, Inc. (NYSE:RVLV) was one of them. Here is what the fund said:
“Revolve is a leading, next-generation online retailer of apparel, accessories, and beauty for fashion-forward people. During the pandemic, Revolve pivoted its offerings and strategy to adapt to the new normal. The company expanded into adjacent categories like beauty, activewear, and intimates, enabling it to serve its customers’ more immediate needs, increase wallet share, and touch more aspects of their lives. This strategy shift was a success. The company delivered record profitability and free cash flow during Q4 2020.
The leadership team intends to use this strong position to prioritize several key strategic investments as the world recovers from COVID-19, including strengthening their Owned Brands portfolio, expanding marketing, and accelerating brand building around the globe. The company reported a record high Net Promoter Score (NPS) for 2020. In geographies where COVID-19 is considered generally under control, the company has seen a return of customer demand for their traditional product categories as well.”
4. Deciphera Pharmaceuticals, Inc. (NASDAQ:DCPH)
Number of Hedge Fund Holders: 29
Deciphera Pharmaceuticals, Inc. (NASDAQ:DCPH) is a biopharma firm that develops drugs for the treatment of cancer. The company recently announced that it had obtained regulatory approval in Europe for Qinlock, a drug for the treatment of gastrointestinal stromal tumors.
HC Wainwright analyst Andrew Fein has a Buy rating on Deciphera Pharmaceuticals, Inc. (NASDAQ:DCPH) stock with a price target of $15. In a recent investor note, the analyst appreciated the decision of the pharma firm to streamline commercial operations.
At the end of the third quarter of 2021, 29 hedge funds in the database of Insider Monkey held stakes worth $493 million in Deciphera Pharmaceuticals, Inc. (NASDAQ:DCPH), up from 23 in the previous quarter worth $568 million.
3. Sprout Social, Inc. (NASDAQ:SPT)
Number of Hedge Fund Holders: 29
Sprout Social, Inc. (NASDAQ:SPT) provides social media management tools. The company beat market estimates on earnings for the third quarter recently and has also announced that it would be integrating WhatsApp into the application suite for business clients. The integration will help enterprises who use Sprout expand their reach by millions.
Piper Sandler analyst Clarke Jeffries recently maintained an Overweight rating on Sprout Social, Inc. (NASDAQ:SPT) stock and raised the price target to $155 from $104, backing the firm to deliver double digits growth till 2025.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Zevenbergen Capital Investments is a leading shareholder in Sprout Social, Inc. (NASDAQ:SPT) with 1.2 million shares worth more than $153 million.
In its Q2 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Sprout Social, Inc. (NASDAQ:SPT) was one of them. Here is what the fund said:
“Sprout Social (is one of the) companies that have become go-to platforms for small and medium size businesses (SMBs) engaged in e-commerce and social media marketing, rebounded strongly in the quarter after being caught in the selloff among high-multiple growth names since Vaccine Monday. These and the portfolio’s other disruptors had thrived through the first part of the pandemic, leading us to trim positions into strength and reallocate cash into more attractively priced evolving opportunities and steady compounders that had been overly punished by lockdowns and a drop in economic activity.”
2. Coinbase Global, Inc. (NASDAQ:COIN)
Number of Hedge Fund Holders: 50
Coinbase Global, Inc. (NASDAQ:COIN) is a fintech firm catering to the crypto-economy. The stock stands to benefit in the long-term as crypto regulations are discussed since it is among the first movers at the market in the category and far ahead of the competition in terms of size.
Coinbase Global, Inc. (NASDAQ:COIN) recently announced that it would be acquiring cryptographic security company Unbound Security as it boosts spending on cybersecurity and plans to expand internationally.
Among the hedge funds being tracked by Insider Monkey, New York-based firm ARK Investment Management is a leading shareholder in Coinbase Global, Inc. (NASDAQ:COIN) with 6.9 million shares worth more than $1.5 billion.
In its Q3 2021 investor letter, Hayden Capital, an asset management firm, highlighted a few stocks and Coinbase Global, Inc. (NASDAQ:COIN) was one of them. Here is what the fund said:
“Coinbase (COIN): We established a new position in Coinbase, the dominant US crypto exchange and brokerage, this quarter. Given the misperceptions and early-stage nature of the industry, I thought it would be helpful for our partners’ understanding to share a report outlining our thesis, which we published on October 31st.
At a high level, we believe the crypto economy is in the middle of “crossing the chasm” into mainstream adoption & use cases, which will result in millions of mainstream users needing to transact in crypto in some form.
Coinbase is well positioned in the Western, regulated markets to capture this influx – considering their dominant market share / mindshare, their focus on the casual user and thus superior userexperience compared to alternatives, and their position as a “toll-booth” for this industry. Longer-term, we also believe Coinbase has “super-app” ambitions, and will be the primary gateway for both the general population and institutions to interact with the crypto economy…” (Click here to see the full text)
1. Atlassian Corporation Plc (NASDAQ:TEAM)
Number of Hedge Fund Holders: 60
Atlassian Corporation Plc (NASDAQ:TEAM) is an application software firm based in Australia. The emergence of a new COVID-19 variant has given a huge boost to the stock that had already been beating market expectations on growth. As the remote work revolution gathers pace, it has room to climb even higher.
Canaccord analyst David Hyne recently raised the price target on Atlassian Corporation Plc (NASDAQ:TEAM) stock to $500 from $325 and kept a Buy rating, highlighting that the company was raising market expectations for subscription growth.
At the end of the third quarter of 2021, 60 hedge funds in the database of Insider Monkey held stakes worth $6 billion in Atlassian Corporation Plc (NASDAQ:TEAM).
Here is what Baron Opportunity Fund has to say about Atlassian Corporation Plc (NASDAQ:TEAM) in its Q2 2021 investor letter:
“Atlassian Corporation Plc is a software leader that makes tools that are used by thousands of teams worldwide, thus its ticker TEAM. Atlassian’s tools “help teams collaborate, build, and create together” (quote from Atlassian’s website), with an emphasis on designing, developing, and maintaining software, including JIRA for team planning and project management, Confluence for team content creation and sharing, HipChat for team messaging and communications, Bitbucket for team software code sharing and management, and JIRA Service Desk for team services and support use cases. Atlassian is the recognized market leader for information technology team planning and project management software, and has extended its product offering into tangential areas, such as those listed above. The company is in the midst of transitioning its business model to the cloud, which will help it drive faster product innovation, more seamlessly integrate its product families, and raise the effective price realization for its suite of products. Atlassian is run by its two visionary founders, has strong competitive advantages, and we think it should be able to grow revenue over 25% for many years with best-in-class free cash flow margins.”
You can also take a peek at 10 Best EV Materials Stocks to Buy and 10 Best NFT Stocks to Buy Now.
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Disclosure. None. 10 Best Fast Growth Stocks to Buy Now is originally published on Insider Monkey.
