In this article, we discuss the 10 best multibagger stocks to buy now.
Everyone is looking to invest in multibagger stocks amid rising inflation and economic uncertainty. Market research suggests that over 15 million Americans used trading apps actively during the COVID-19 pandemic, most of them being young, amateur traders. The hyperactivity of retail investors has also been observed in Europe, India, and the Philippines, with buyers increasing their trading volume by two times the normal activity.
In 2020, US retail investors surpassed renowned corporations as the majority stakeholders in companies. The market speculated that the retail investors’ craze would subside when meme stocks like Robinhood Markets, Inc. (NASDAQ:HOOD) and GameStop Corp. (NYSE:GME) would stop getting hyped up by the media and eventually die down, but the trading activity of new investors has only skyrocketed.
Some of the most notable multibagger stocks based on the stock price gains in the last twelve months include Devon Energy Corporation (NYSE:DVN), NVIDIA Corporation (NASDAQ:NVDA), and Ford Motor Company (NYSE:F).
Our Methodology
We selected stocks that returned more than 100% in 2021, making sure to choose companies that reported solid Q3 earnings, had positive analyst ratings, and strong company fundamentals.
We also mentioned the hedge fund sentiment around each stock, which was gauged out of the 867 hedge funds that were monitored by Insider Monkey in the third quarter.
Best Multibagger Stocks To Buy Now
10. Devon Energy Corporation (NYSE:DVN)
12-Month Returns as of January 3: 180.72%
Number of Hedge Fund Holders: 48
Devon Energy Corporation (NYSE:DVN) is an American energy company specializing in hydrocarbon exploration. Devon Energy Corporation (NYSE:DVN) deals in petroleum, natural gas, and natural gas liquids.
On December 8, Devon Energy Corporation (NYSE:DVN) declared a quarterly dividend of $0.74 per share, payable on December 30 to shareholders of record on December 10. The $0.74 per share dividend reflects a 71.4% increase from the prior quarter dividend of $0.49 per share.
The Q3 results, published on November 2 by Devon Energy Corporation (NYSE:DVN), reported an EPS of $1.08, exceeding estimates by $0.15. Revenue for the quarter came in at $3.47 billion, up 224.84% from the prior year quarter, beating estimates by $546.05 million.
Mizuho analyst Silvio Micheloto on November 30 raised the price target on Devon Energy Corporation (NYSE:DVN) to $61 from $59 and kept a Buy rating on the shares. He expects the U.S. unconventional oil growth to “continually lag the call on supply necessary to balance global markets”.
In Q3 2021, 48 hedge funds tracked by Insider Monkey were bullish on Devon Energy Corporation (NYSE:DVN), down from 50 funds in the preceding quarter. Rajiv Jain’s GQG Partners, the leading Devon Energy Corporation (NYSE:DVN) stakeholder, increased its stake in the company by 87103% in the third quarter. GQG Partners holds 13.9 million shares of Devon Energy Corporation (NYSE:DVN), worth approximately $494 million.
Here is what GoodHaven Capital Management has to say about Devon Energy Corporation (NYSE:DVN) in their Q4 2020 investor letter:
“After a rough start to the year our two biggest energy holdings – WPX Energy rebounded materially in the last six months though energy was still our biggest detractor for the year. I’ve previously written about deciding earlier this year to direct new capital towards better businesses versus adding more to the energy sector, but given the material optionality at WPX, we opted to maintain a material exposure. Recently WPX announced an all stock merger with a larger competitor – Devon Energy – which will leave the new company with plenty of cash flow at lower oil prices, less leverage, and material upside to higher commodity prices.”
9. LendingClub Corporation (NYSE:LC)
12-Month Returns as of January 3: 162.53%
Number of Hedge Fund Holders: 25
LendingClub Corporation (NYSE:LC) is a California-based peer-to-peer lending company, offering a business model that allows individuals to borrow unsecured personal loans worth up to $40,000.
According to Insider Monkey’s Q3 data, 25 hedge funds reported owning stakes in LendingClub Corporation (NYSE:LC), worth $437.3 million, as compared to 23 funds in the preceding quarter, holding stakes amounting to roughly $375 million.
As per the third quarter earnings reported on October 27, LendingClub Corporation (NYSE:LC) posted earnings per share of $0.26, beating estimates by $0.13. Revenue over the period totaled $246.17 million, increasing 246.17% year-over-year, outperforming estimates by $24.20 million.
Wedbush analyst David Chiaverini on December 21 assumed coverage of LendingClub Corporation (NYSE:LC) with an Outperform rating and a price target of $40, down from $50. The analyst appreciated the LendingClub Corporation (NYSE:LC)’s new business model following the acquisition of Radius Bank earlier this year, stating that the company offers high expected growth, better credit quality than peers, and a “reasonable” valuation.
The largest LendingClub Corporation (NYSE:LC) stakeholder as of Q3 2021 is Cathie Wood’s ARK Investment Management, with 2.88 million shares worth $81.5 million.
In addition to Devon Energy Corporation (NYSE:DVN), NVIDIA Corporation (NASDAQ:NVDA), and Ford Motor Company (NYSE:F), LendingClub Corporation (NYSE:LC) is one of the best multibagger stocks to invest in.
8. Signet Jewelers Limited (NYSE:SIG)
12-Month Returns as of January 3: 239.93%
Number of Hedge Fund Holders: 33
Signet Jewelers Limited (NYSE:SIG) made it to our list of the best multibagger stocks, having gained about 239.93% return over the last twelve months. Headquartered in Ohio, Signet Jewelers Limited (NYSE:SIG) is the largest retailer of diamond jewelry in the world. The company owns jewelry brands including Zales, Kay Jewelers, Jared, and JamesAllen.com, and is a leading distributor in the American, Canadian, and UK markets for diamonds.
Posting its Q3 earnings on December 2, Signet Jewelers Limited (NYSE:SIG) announced earnings per share of $1.43, topping estimates by $0.71. The quarterly revenue jumped 18.27% year-over-year to $1.54 billion, exceeding estimates by $110.62 million.
On December 3, Citi analyst Paul Lejuez raised the price target on Signet Jewelers Limited (NYSE:SIG) to $100 from $93 and kept a Neutral rating on the shares. The analyst views the company’s guidance as conservative.
Signet Jewelers Limited (NYSE:SIG) announced on November 18 that it has finalized its acquisition of Diamonds Direct, an American specialty diamonds company, for $490 million in cash. Diamonds Direct currently operates 22 locations with mature stores having a median annualized revenue of approximately $18.5 million over the last twelve months, which will help Signet Jewelers Limited (NYSE:SIG) expand its operations and improve company fundamentals.
A total of 33 hedge funds monitored by Insider Monkey were long Signet Jewelers Limited (NYSE:SIG) in the third quarter, with total stakes valued at $1.16 billion. The leading Signet Jewelers Limited (NYSE:SIG) stakeholder is Robert Joseph Caruso’s Select Equity Group, holding 5.23 million shares worth almost $413 million.
Signet Jewelers Limited (NYSE:SIG) is one of the top multibagger stock picks of hedge funds, in addition to Devon Energy Corporation (NYSE:DVN), NVIDIA Corporation (NASDAQ:NVDA), and Ford Motor Company (NYSE:F).
7. Grid Dynamics Holdings, Inc. (NASDAQ:GDYN)
12-Month Returns as of January 3: 214.60%
Number of Hedge Fund Holders: 18
Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) is an IT company that offers digital transformation services to enterprise-level firms. Grid Dynamics Holdings, Inc. (NASDAQ:GDYN)’s services include technical consulting, software design, development, testing, emerging technology engineering services, lean labs, and legacy re-platforming solutions. The company provides its services to the retail, technology, consumer packaged goods, manufacturing, and finance sectors.
In the third quarter earnings results, announced on November 4, Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) posted earnings per share of $0.11, exceeding estimates by $0.03. The revenue gained 120% year-over-year, reaching $57.93 million, outperforming estimates by $7.06 million.
Needham analyst Mayank Tandon raised the price target on Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) to $45 from $30 and kept a Buy rating on the shares on November 5. The company posted “stellar” Q3 results that beat expectations across the board as revenue jumped 15% from Q2 on an organic basis.
Of the 18 hedge funds that were long Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) in Q3, Driehaus Capital is the largest company stakeholder, increasing its stake in Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) by 242% as of September 2021. Driehaus Capital owns 2.72 million shares of Grid Dynamics Holdings, Inc. (NASDAQ:GDYN), worth $79.5 million.
Here is what Baron FinTech Fund has to say about Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) in its Q3 2021 investor letter:
“Grid Dynamics Holdings Inc. provides outsourced software development to business customers. Shares increased after the company reported strong quarterly results with 72% organic revenue growth and raised annual guidance. Grid is benefiting from robust demand as clients across industries invest in digital transformation. The company issued new shares in late June, which temporarily depressed the share price but provided dry powder for M&A. We continue to own the stock because we believe the company has unique capabilities and a long runway for growth.”
6. Chico’s FAS, Inc. (NYSE:CHS)
12-Month Returns as of January 3: 227.98%
Number of Hedge Fund Holders: 19
Chico’s FAS, Inc. (NYSE:CHS) is an American retailer of clothing and accessories for women, operating online and in-stores across the US and Canada. In Q3 2021, 19 hedge funds monitored by Insider Monkey were bullish on Chico’s FAS, Inc. (NYSE:CHS), down from 22 funds in the preceding quarter.
Chico’s FAS, Inc. (NYSE:CHS) is one of the best multibagger stocks to buy now, delivering a 227.98% return for 2021. In the third quarter earnings report, announced on November 30, Chico’s FAS, Inc. (NYSE:CHS) posted an EPS of $0.18, beating estimates by $0.20. Revenue over the period equaled $453.64 million, up 29.09% from the preceding year quarter, outperforming estimates by $27.54 million.
Riley analyst Susan Anderson on December 1 raised the price target on Chico’s FAS, Inc. (NYSE:CHS) to $6 from $5.25 and kept a Neutral rating on the shares post the Q3 results.
The largest Chico’s FAS, Inc. (NYSE:CHS) stakeholder from Q3 is Jim Simons’ Renaissance Technologies, with 6.73 million shares worth $30.2 million.
Here is what Miller Value Partners has to say about Chico’s FAS, Inc. (NYSE:CHS) in its Q3 2021 investor letter:
“Chico’s FAS (CHS) declined 31.8% during the period despite reporting Q2 revenue of $472M (+54% Y/Y) and EBITDA of $50M, both well ahead of consensus of $407M and $5M, respectively. Gross margin of 38.4% reached the highest level in five years, driven by controlled inventories and lower promotional levels while free cash flow (FCF) of $35M improved from $6.7M Y/Y and $8.9M in 2Q19. Management raised their FY21 outlook, including net sales improvement of 32%-35% (from 28%-34%) and gross margin improvement of 20%-22% (from 18%-20%), implying net sales of $1.75Bn-$1.79Bn (versus consensus of $1.75Bn) and EBITDA of $45M-$98M (versus consensus of $55M). Additionally, Chico’s announced the appointment of Patrick Guido as CFO. Mr. Guido brings over twenty years of retail experience to the management team, including as the CFO of lululemon (LULU) and Treasurer of VF Corporation (VFC).”
5. Ring Energy, Inc. (NYSE:REI)
12-Month Returns as of January 3: 285.82%
Number of Hedge Fund Holders: 9
Ring Energy, Inc. (NYSE:REI) is a Texas-based oil and gas company that offers crude oil and natural gas liquids from its rich assets in the Permian Basin of Texas and New Mexico.
On November 9, Ring Energy, Inc. (NYSE:REI) posted its earnings for Q3 2021. The company declared earnings per share of $0.18, beating estimates by $0.10. The revenue jumped 56.92% year-over-year to $49.38 million, exceeding estimates by $5.65 million.
Roth Capital analyst John White upgraded Ring Energy, Inc. (NYSE:REI) on October 14 to Buy from Neutral with a $4.75 price target. According to the analyst, Ring Energy, Inc. (NYSE:REI) re-negotiated more favorable crude oil transportation agreements involving lower pipeline tariffs and trucking fees, in addition to making significant changes to the senior management.
According to the hedge funds tracked by Insider Monkey, John Overdeck and David Siegel’s Two Sigma Advisors is the biggest Ring Energy, Inc. (NYSE:REI) stakeholder as of September end. Two Sigma Advisors increased its stake in the company by 876% in Q3 2021, with 1.69 million shares worth over $5 million.
4. Identiv, Inc. (NASDAQ:INVE)
12-Month Returns as of January 3: 237.09%
Number of Hedge Fund Holders: 10
Identiv, Inc. (NASDAQ:INVE) is a global leader in authentication and security solutions. The company verifies operations, protects identities from malicious attacks, secures intellectual property, and works to innovate its services using IoT.
Identiv, Inc. (NASDAQ:INVE), on November 2, reported earnings for the third quarter. The company posted earnings per share of $0.06, beating estimates by $0.02. The $29.01 million revenue was up 17.05% year-over-year, but missed estimates by $88,250.
In the third quarter of 2021, 10 hedge funds in the database of Insider Monkey were long Identiv, Inc. (NASDAQ:INVE), holding stakes worth $78.8 million. This is compared to 7 funds holding stakes in Identiv, Inc. (NASDAQ:INVE) in the preceding quarter, valued at $65 million.
Riley analyst Craig Ellis raised the price target on Identiv, Inc. (NASDAQ:INVE) on November 3 to $31 from $26 and reiterated a Buy rating on the shares following the Q3 beat. The analyst believes that Identiv, Inc. (NASDAQ:INVE) is “approaching a high-volume” internet of things inflection, led by its “differentiated” IoT offerings.
Portolan Capital Management is the leading company stakeholder as of Q3 2021, with 1.48 million shares worth over $28 million.
Here is what Choice Equities Capital Management has to say about Identiv, Inc. (NASDAQ:INVE) in its Q3 2021 investor letter:
“INVE –Recent reports and field research each suggest Identiv is well-positioned to become a much larger company. CEO Steve Humphries is having success building out the team. In the past quarter, he successfully lured Amir Khoshniyati away from SmarTrac at Avery Dennison to become VP of Business Development, who himself has since successfully convinced several of his former colleagues to help him expand the sales efforts alongside him at Identiv. The burgeoning sales team has been busy and productive, enabling further additions to the company’s backlog, which was up 51% on a year-over-year basis in the quarter. And the pipeline of new business and potential new use cases is expanding rapidly. The elephant-sized, billion-plus unit opportunities such as the deployment of chips in syringes and cannabis continue to move forward and remain in sight as potential drivers next year. But perhaps more importantly as it relates to the likelihood of success for the market for radio-frequency identification (RFID) chips based on near field communications (NFC) technology, the long tail of new and small-to medium sized use case opportunities has been the primary driver of unit growth thus far. Signs suggest continued reason for optimism for this small company and their market leading position in potentially massive end markets built around securely connecting physical things to the digital world.”
3. Grindrod Shipping Holdings Ltd. (NASDAQ:GRIN)
12-Month Returns as of January 3: 293.28%
Number of Hedge Fund Holders: 10
Another top multibagger stock to purchase is Grindrod Shipping Holdings Ltd. (NASDAQ:GRIN), providing a return of 293.28% in 2021. Grindrod Shipping Holdings Ltd. (NASDAQ:GRIN) is headquartered in South Africa, providing freight logistics and shipping services.
Grindrod Shipping Holdings Ltd. (NASDAQ:GRIN) reported its third quarter results on November 17, posting earnings per share of $2.28, exceeding estimates by $0.19. Revenue over the period came in at $135.14 million, outperforming estimates by $19.06 million.
Jefferies analyst Randy Giveans on October 28 initiated coverage of Grindrod Shipping Holdings Ltd. (NASDAQ:GRIN) with a Buy rating and a $20 price target. The analyst sees an attractive outlook for dry bulk shipping and says the company has “a fortress balance sheet”.
According to Insider Monkey’s Q3 records, 10 hedge funds reported owning stakes in Grindrod Shipping Holdings Ltd. (NASDAQ:GRIN), up from only 2 funds in the preceding quarter.
2. Biotricity, Inc. (NASDAQ:BTCY)
12-Month Returns as of January 3: 433.78%
Number of Hedge Fund Holders: 1
Biotricity, Inc. (NASDAQ:BTCY) is a medical technology company that provides biometric data monitoring solutions, in addition to its Bioflux MCT technology, consisting of a monitoring device and an ECG reporting software component. Biotricity, Inc. (NASDAQ:BTCY) stock returned 433.78% in 2021, making it one of the best multibagger stocks to buy now.
H.C. Wainwright analyst Kevin Dede initiated coverage of Biotricity, Inc. (NASDAQ:BTCY) on November 23 with a Buy rating and a $6 price target. The analyst observed that horizontal and vertical growth avenues present an attractive opportunity in remote chronic cardiac care and monitoring.
Billionaire Ken Griffin’s Citadel Investment Group recently added Biotricity, Inc. (NASDAQ:BTCY) to its Q3 portfolio, buying stakes worth $37,000.
In its third quarter results, published on November 4, Biotricity, Inc. (NASDAQ:BTCY) announced a loss per share of $0.26, missing estimates by $0.17. The $1.81 million revenue also missed estimates by $101,190.
1. Vertex Energy, Inc. (NASDAQ:VTNR)
12-Month Returns as of January 3: 538.14%
Number of Hedge Fund Holders: 10
Vertex Energy, Inc. (NASDAQ:VTNR) is one of the best multibagger stocks to purchase now, accumulating a 538.14% return for the year in 2021. Vertex Energy, Inc. (NASDAQ:VTNR) is a petroleum refining company based in Houston, Texas. Vertex Energy, Inc. (NASDAQ:VTNR) is one of the leading processors of used motor oil in the United States, with a processing capacity of more than 115 million gallons per annum.
Vertex Energy, Inc. (NASDAQ:VTNR), on November 9, announced its Q3 results. The company posted a loss per share of $0.06, missing estimates by $0.05. The revenue jumped 76.35% year-over-year to $65.93 million, outperforming estimates by $11.68 million.
Credit Suisse analyst Manav Gupta initiated coverage of Vertex Energy, Inc. (NASDAQ:VTNR) with an Outperform rating and a $13 price target. The analyst reported that Vertex Energy, Inc. (NASDAQ:VTNR) is in the process of selling its legacy businesses of motor oil collection and recycling assets to become a renewable diesel producer. This opportunity “not only implies significant earnings growth potential, but it should also drive meaningful multiple expansion”, according to Gupta.
One of the leading Vertex Energy, Inc. (NASDAQ:VTNR) stakeholders out of the 10 hedge funds that were bullish on the stock as of the third quarter is Millennium Management, increasing its stake in Vertex Energy, Inc. (NASDAQ:VTNR) by 604%, holding an $11.5 million position.
Wasatch Global Investors mentioned Vertex Energy, Inc. (NASDAQ:VTNR) in its Q2 2021 investor letter. Here is what the firm said:
“The top contributor to Fund performance for the second quarter was Vertex Energy, Inc. (VTNR), a middle-market consolidator, refiner and rerefiner of distressed petroleum products such as used oil, transmix and off-specification commercial chemical products. The stock soared after the company agreed to purchase an Alabama refinery from Royal Dutch Shell for $75 million. According to comments by CEO Benjamin Cowart in the deal announcement, this was the “largest, most significant transaction ever completed by Vertex, one that positions us to become a leading regional supplier of both renewable and conventional products.” After another $85 million in investments to convert the hydrocracking unit to produce renewable diesel, Mr. Cowart believes the Alabama refinery could generate $3 billion in revenue and $400 million in gross profit as soon as 2023. While we admire Mr. Cowart’s optimism, we think the stock price has gotten ahead of company fundamentals—partially due to over exuberance regarding “green energy”—and we sold our position in Vertex.”
You can also take a look at 10 Electric Car Stocks to Buy for 2022 and 10 High Dividend Stocks for 2022.
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Disclosure: None. 10 Best Multibagger Stocks To Buy Now is originally published on Insider Monkey.
