In this article, we discuss the 10 best-performing growth stocks in November 2022.

Stocks climbed on November 30 as Federal Reserve Chair Jerome Powell reassured investors and businesses that the aggressive rates policy by the central bank will be controlled. Resultantly, the Dow Jones Industrial Average climbed 1%, the tech-heavy Nasdaq rose 3.2%, and the benchmark S&P 500 gained 2%. Job openings declined in October, a promising sign for the Fed as it aims to control demand.

The three benchmark indices in the United States – The Dow Jones Industrial Average, Nasdaq Composite, and the S&P 500 have reported gains over the last month as of November 30, rising 4.54%, 2.84%, and 4.14%, respectively. While investors usually seek shelter in value plays during market downturns, it is prudent to focus on near-term share price appreciation provided by growth equities. 

Some of the best performing growth stocks over the month of November include JD.com, Inc. (NASDAQ:JD), Alibaba Group Holding Limited (NYSE:BABA), and Futu Holdings Limited (NASDAQ:FUTU). 

Our Methodology 

We selected growth stocks with a price-to-earnings ratio of more than 25 and 1-month share price gains of at least 35% as of November 30 for this analysis. The following growth stocks are ranked according to their share price gains over the last month. We have assessed the hedge fund sentiment from Insider Monkey’s database of 920 elite hedge funds tracked as of the end of the third quarter of 2022. 

Best-Performing Growth Stocks in November 2022

10. American Eagle Outfitters, Inc. (NYSE:AEO)

Number of Hedge Fund Holders: 27

1-Month Share Price Gain as of November 30: 35.08%

American Eagle Outfitters, Inc. (NYSE:AEO) is a Pennsylvania-based specialty retailer that provides clothing, accessories, and personal care products under the American Eagle and Aerie brands. On November 22, American Eagle Outfitters, Inc. (NYSE:AEO) reported a Q3 GAAP EPS of $0.42 and a revenue of $1.24 billion, outperforming Wall Street estimates by $0.21 and $30 million, respectively. As of November 30, American Eagle Outfitters, Inc. (NYSE:AEO) stock has gained over 35% in the last month. 

On November 23, BMO Capital analyst Daniel Stroller raised the price target on American Eagle Outfitters, Inc. (NYSE:AEO) to $14 from $10 and kept a Market Perform rating on the shares. The analyst cited American Eagle Outfitters, Inc. (NYSE:AEO)’s “strong” Q3 earnings beat and “significant” margin improvement. However, he added that while the management is “clearly executing on controllables”, he remains neutral on the stock given the macro concerns, industry promotions, and inventory builds.

According to Insider Monkey’s data, 27 hedge funds were bullish on American Eagle Outfitters, Inc. (NYSE:AEO) at the end of Q3 2022, compared to 29 funds in the prior quarter. Gavin Baker’s Atreides Management is a prominent position holder in the company, with 3.7 million shares worth $36.7 million. 

Like JD.com, Inc. (NASDAQ:JD), Alibaba Group Holding Limited (NYSE:BABA), and Futu Holdings Limited (NASDAQ:FUTU), American Eagle Outfitters, Inc. (NYSE:AEO) is one of the best-performing growth stocks to watch. 

9. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 105

1-Month Share Price Gain as of November 30: 37.50%

Alibaba Group Holding Limited (NYSE:BABA), a Chinese technology conglomerate, was one of the best-performing growth stocks in November 2022. On November 17, Alibaba Group Holding Limited (NYSE:BABA) reported a Q2 non-GAAP EPADS of $1.82, beating estimates by $0.17. The revenue climbed 3% year-over-year to $29.12 billion. However, it fell short of Wall Street forecasts by $490 million. 

On November 18, UBS analyst Jerry Liu maintained a Buy rating on Alibaba Group Holding Limited (NYSE:BABA) but lowered the price target on the shares to $135 from $140 following its Q2 results. The company is one of multiple names in his coverage for macro improvement and represents a “value play” at 9-times expected forward earnings, but investors should expect that growth will slow in the December quarter before rallying next year, the analyst told investors.

According to Insider Monkey’s data, 105 hedge funds were long Alibaba Group Holding Limited (NYSE:BABA) at the end of Q3 2022, compared to 106 funds in the last quarter. David Blood and Al Gore’s Generation Investment Management is a significant stakeholder of the company, with 4.50 million shares worth $360.7 million. 

Polen Capital made the following comment about Alibaba Group Holding Limited (NYSE:BABA) in its October investor letter:

“Alibaba Group Holding Limited (NYSE:BABA) is the leading e-commerce company in China. The stock was weak over the quarter as they reported a quarterly revenue decline. The company has been heavily impacted by the continued covid-19 lockdowns throughout China and the aggressive rate increases and deteriorating outlook for China’s economy have weighed heavily on the stock. The share price has also been under pressure due to the U.S. Securities and Exchange Commission’s plans to delist Chinese tech stocks in 2024 if they do not provide access to audit files.”

8. Sunrun Inc. (NASDAQ:RUN)

Number of Hedge Fund Holders: 47

1-Month Share Price Gain as of November 30: 37.72%

Sunrun Inc. (NASDAQ:RUN) is a California-based company engaged in the design, development, installation, and maintenance of residential solar energy systems in the United States. On November 2, the company reported a Q3 GAAP EPS of $0.96 and a revenue of $631.91 million, topping Wall Street consensus by $1.01 and $63.28 million, respectively. Revenue for the period climbed 44% year-over-year. Sunrun Inc. (NASDAQ:RUN) reported customer additions of 35,760 in Q3 2022, bringing total customers to 759,937, representing a 21% year-over-year growth. 

On November 14, Deutsche Bank analyst Corinne Blanchard assumed coverage of Sunrun Inc. (NASDAQ:RUN) with a Buy rating and a $36 price target. The analyst’s bullish outlook on the solar space is “underpinned by considerable growth opportunities” for the U.S. residential sector and the “most powerful and positive regulatory environment the industry has ever seen.” Tailwinds will “outshine any short-lived negatives,” the analyst told investors. The analyst “favors quality names that look well set to benefit from a growing untapped market” and higher solar demand in the U.S. and in primary international markets. She said Sunrun Inc. (NASDAQ:RUN) is well positioned to take advantage from the present positive policy momentum for residential solar.

Among the hedge funds tracked by Insider Monkey, 47 funds were long Sunrun Inc. (NASDAQ:RUN) at the end of September 2022, compared to 36 funds in the prior quarter. William B. Gray’s Orbis Investment Management is the biggest position holder in the company, with 12.2 million shares worth $337 million. 

Here is what Horizon Kinetics had to say about Sunrun Inc. (NASDAQ:RUN) in its Q2 2021 investor letter:

“What this table did not cover is valuation. What’s expensive, what’s cheap? A good business that is too expensive is not a good investment. The most expensive business on the table is Sunrun. Sunrun is the nation’s largest residential rooftop solar panel system seller/installer. Sunrun’s valuation might also shed Thumbnail valuation.

To start at the top of the income statement, Sunrun shares trade at 10.3x revenues. The most profitable company in the S&P 500, Microsoft, trades at 13x revenues. Sunrun operates at a loss. Obviously, not only is tremendous growth anticipated, but tremendous profitability, too.

Let’s simply accept that investors have correctly anticipated Sunrun’s future success and make that the starting point for a valuation exercise.

If, 10 years from now, Sunrun is ultimately valued at 25x net income, and if today’s $9.5 billion valuation is appropriate, that would require $380 million of net income ($9,500 million ÷ 25).

Let’s say Sunrun will have the same net profit margin as the average S&P 500 company, which is 10%. That means it would need $3,800 million of sales to generate that level of earnings ($380 mill ÷ 10%).

Since sales are now $920 million, they would have to rise by 4.1x in the next 10 years. That would require annual sales growth of 15.2%.

You see how neatly that all works: investors accept the company’s 10-year, 15% annual sales growth projections, and if a 10% net profit margin and a P/E of 25x earnings are reasonable, then the company will have a $9.5 billion market cap at that time. Except that is the current price. That means a 10-year return of zero.

In order to get a 10% annualized return from the stock, Sunrun would need to be priced at a P/E of 65x its earnings 10 years from now, if at a 10% net margin. Or it would have to have some combination of lower P/E and higher growth and/or higher profit margin.

In the meantime, this is Sunrun’s recent pattern of revenue growth and profitability (the company did recently increase its estimate of installed-capacity growth in 2021 from 20-25% to a new estimate of 25% to 30%).

For the time being, Sunrun loses an extraordinary amount of money, an amount that has been getting larger. Perhaps there are economies of scale that will manifest in the future,so that it will attain profitability. Perhaps from the roughly one-half of Sunrun’s revenues that are from long-term customer service agreements that run up to 25 years. For now, though, the company would seem to require a lot of external financing, and that is one of the greatest business risks.”

7. Lattice Semiconductor Corporation (NASDAQ:LSCC)

Number of Hedge Fund Holders: 35

1-Month Share Price Gain as of November 30: 41.04%

Lattice Semiconductor Corporation (NASDAQ:LSCC) is one of the best-performing growth stocks as of November 2022. Lattice Semiconductor Corporation (NASDAQ:LSCC) is an Oregon-based company that develops and sells semiconductor products in Asia, Europe, and the Americas. On October 31, the company reported a Q3 non-GAAP EPS of $0.48 and a revenue of $172.5 million, outperforming Wall Street forecasts by $0.04 and $6.23 million, respectively. Revenue for the fourth quarter of 2022 is expected to be between $170 million and $180 million, versus a $169.5 million consensus. 

Susquehanna analyst Christopher Rolland on November 15 raised the price target on Lattice Semiconductor Corporation (NASDAQ:LSCC) to $75 from $72 and maintained a Positive rating on the shares. The analyst found the management to be more upbeat than peers, perhaps due to the newer greenfield opportunities such as Avant, PC, and the Nexus ramp.

According to the third quarter database of Insider Monkey, 35 hedge funds were bullish on Lattice Semiconductor Corporation (NASDAQ:LSCC), compared to 33 funds in the earlier quarter. Brian Ashford-Russell and Tim Woolley’s Polar Capital is the largest stakeholder of the company, with 2.5 million shares worth about $126 million. 

Here is what Artisan Partners specifically said about Lattice Semiconductor Corporation (NASDAQ:LSCC) in its Q2 2022 investor letter:

“Lattice Semiconductor Corporation (NASDAQ:LSCC) recently reported +30% revenue growth and +600bps of margin expansion. We believe multiple product and program launches throughout the remainder of the year will sustain the company’s solid fundamental momentum. Longer-term, Lattice is well-positioned to provide FPGA chips to data centers, new 5G infrastructure and to tap into low power/reprogrammable chips as well as the industrial and automotive end markets. In addition, its solid pipeline of new chips should expand its addressable market and margins.”

6. Pinduoduo Inc. (NASDAQ:PDD)

Number of Hedge Fund Holders: 54

1-Month Share Price Gain as of November 30: 45.85%

Pinduoduo Inc. (NASDAQ:PDD) is a Shanghai-based company that operates an e-commerce platform in the People’s Republic of China. On November 28, Pinduoduo Inc. (NASDAQ:PDD) reported a Q3 non-GAAP EPADS of $1.21 and a revenue of $4.99 billion, topping analysts’ estimates by $0.49 and $690 million, respectively. 

On November 30, Barclays analyst Jiong Shao raised the price target on Pinduoduo Inc. (NASDAQ:PDD) to $84 from $70 and kept an Overweight rating on the shares. Following 36% year-over-year revenue growth in Q2 after the largely restrictive two-month lockdown in Shanghai, Pinduoduo Inc. (NASDAQ:PDD) posted 65% year-over-year revenue growth for Q3 “when some of its larger peers delivered quite modest growth, at best,” the analyst told investors. 

According to Insider Monkey’s data, 54 hedge funds were bullish on Pinduoduo Inc. (NASDAQ:PDD) at the end of September 2022, up from 41 funds in the earlier quarter. Rajiv Jain’s GQG Partners is the largest stakeholder of the company, with 5.20 million shares worth nearly $326 million. 

In addition to JD.com, Inc. (NASDAQ:JD), Alibaba Group Holding Limited (NYSE:BABA), and Futu Holdings Limited (NASDAQ:FUTU), Pinduoduo Inc. (NASDAQ:PDD) is one of the growth stocks backed by smart investors. 

Here is what Tao Value has to say about Pinduoduo Inc. (NASDAQ:PDD) in its Q4 2021 investor letter:

“On the detracting side, one of our largest detractors includes Pinduoduo (ticker: PDD). Pinduoduo (PDD) reported the second consecutive GAAP profit quarter yet missed on the revenue due to nation-wide consumption weakness & scaled back Sales & Marketing efforts. Market disliked it and the stock price plunged on the earnings. In my opinion, the accounting profits proved the original thesis of using S&M to acquire users and using great shopping experience to keep them. After realizing the first growth curve, Pinduoduo now shifted its focus & investment to agriculture. It is still very early, but the reduced size due to price drop warrants a position to watch and continue to grow with such a team with a strong culture.”

5. Abiomed, Inc. (NASDAQ:ABMD)

Number of Hedge Fund Holders: 34

1-Month Share Price Gain as of November 30: 49.75%

Abiomed, Inc. (NASDAQ:ABMD) is one of the best-performing growth stocks as of November 2022. Abiomed, Inc. (NASDAQ:ABMD) is a Massachusetts-based company specializing in the research, development, and commercialization of medical devices to assist or replace the pumping function of the failing heart.

On November 1, Johnson & Johnson (NYSE:JNJ) announced that it has agreed to acquire Abiomed, Inc. (NASDAQ:ABMD) for an upfront payment of $380 per share in cash. The deal, valued at nearly $16.6 billion, including debt and cash, is expected to conclude before Q1 2023 ends.

Morgan Stanley analyst Cecilia Furlong upgraded Abiomed, Inc. (NASDAQ:ABMD) on November 2 to Equal Weight from Underweight with a price target of $380, up from $235, after Johnson & Johnson (NYSE:JNJ) agreed to acquire all outstanding shares of Abiomed, Inc. (NASDAQ:ABMD). She was priorly cautious on the short-term setup for the stock, but believes the transaction is likely to happen, the analyst told investors.

According to Insider Monkey’s data, 34 hedge funds were long Abiomed, Inc. (NASDAQ:ABMD) at the end of Q3 2022, compared to 30 funds in the last quarter. David Blood and Al Gore’s Generation Investment Management is the largest stakeholder of the company, with 1.3 million shares worth $328.3 million. 

4. JD.com, Inc. (NASDAQ:JD)

Number of Hedge Fund Holders: 67

1-Month Share Price Gain as of November 30: 53.31%

JD.com, Inc. (NASDAQ:JD) provides supply chain-based technologies and services in the People’s Republic of China. It is one of the best-performing equities in November 2022, with the shares up over 53% in the last month. JD.com, Inc. (NASDAQ:JD) reported a Q3 Non-GAAP EPADS of $0.88, beating market estimates by $0.25. Annual active customer accounts also increased by 6.5% to 588.3 million in the twelve months ended September 30, 2022.

On November 21, Citi analyst Alicia Yap raised the price target on JD.com, Inc. (NASDAQ:JD) to $90 from $85 and kept a Buy rating on the shares following the Q3 beat. Management confirmed that the higher profitability achieved through efficiency and controlled costs will be sustainable, the analyst told investors in a research note. She believes JD.com, Inc. (NASDAQ:JD) remains well positioned to capture accelerating growth in revenue and active user count once the pandemic is over.

According to Insider Monkey’s Q3 data, 67 hedge funds were long JD.com, Inc. (NASDAQ:JD), compared to 62 funds in the prior quarter. Chase Coleman’s Tiger Global Management is the largest position holder in the company, with approximately 30 million shares worth $1.50 billion. 

Here is what Argosy Investors has to say about JD.com, Inc. (NASDAQ:JD) in its Q3 2021 investor letter:

“We sold JD as a result of the furor over Chinese stocks during the quarter. We had been concerned about China’s lack of respect for investor rights for some time, and Beijing has become significantly more aggressive in asserting itself of late. In addition, the legal structure Chinese companies use to come public in the U.S., a Cayman Islands shell corporation leaves American investors with an unsure path to recovering value should these companies cease to trade on U.S. exchanges. Because of the uncertainty, we exited our position in JD completely. We still love JD’s long-term prospects, but we cannot estimate the legal/regulatory risk associated with these companies anymore. More broadly, we are freeing up cash for some other positions we already own which have declined in this market, and after additional review, remain attractive.”

3. Futu Holdings Limited (NASDAQ:FUTU)

Number of Hedge Fund Holders: 14

1-Month Share Price Gain as of November 30: 78.50%

Futu Holdings Limited (NASDAQ:FUTU) operates an online brokerage and wealth management platform in Hong Kong and internationally. On November 21, Futu Holdings Limited (NASDAQ:FUTU) reported a Q3 GAAP EPADS of $0.68, beating analysts’ estimates by $0.07. The revenue climbed 11.5% year-over-year to $247.9 million, outperforming Wall Street forecasts by $19.75 million. Total number of paying clients increased 23.8% year-over-year to 1,444,955 as of September 30 and non-GAAP adjusted net income increased 24.8% year-over-year to $102.7 million. Futu Holdings Limited (NASDAQ:FUTU) is one of the best-performing growth stocks to monitor. 

On October 24, investment advisory DBS Bank initiated coverage of Futu Holdings Limited (NASDAQ:FUTU) with a Buy rating and a $55 price target.

Among the hedge funds tracked by Insider Monkey, 14 funds reported owning stakes worth $113.3 million in Futu Holdings Limited (NASDAQ:FUTU) at the end of Q3 2022, compared to 9 funds in the prior quarter worth $153.2 million. Israel Englander’s Millennium Management is the leading position holder in the company, with 1.3 million shares valued at $49 million. 

Here is what Tao Value has to say about Futu Holdings Limited (NASDAQ:FUTU) in their Q1 2021 investor letter:

“Futu is a new “Opportunistic” position. It is an HK based online brokerage & wealth management platform with deep roots in technology. Futu sits in the confluence of 3 strong favorable forces of Meteorology, Topography & Commander, yet was underpriced at the time of our entry. In terms of Meteorology, there is a huge addressable market of Chinese domestic middle to upper classes’ wealth being deployed to overseas assets allocation in the next decade. Additionally, the incumbents being disrupted are extremely weak in their digital transformation. On Topography, Futu’s user-centric product design built an intuitive front end and great user experience, while the digital native development framework built a solid & reliable back end (including a self-developed order routing & execution system for the HK market). This is a rare combination compared to both offline incumbents (who lack flashy front end & UX) & other new online disrupters (who lack solid infrastructure). On Commander factor, founder CEO Li Hua was a Tencent engineer in its early days with deep knowledge in product design and development. Li is said to be a fanatic product manager, to this day still at the front-line, alpha testing any new features. Based on analyses of these factors, I think Futu could compound its revenue at a very high rate with very high certainty and with strong operating leverage, putting our entry price very attractive compared to earning power in 3-5 years. Yet just as we finished building a small position, the price started to take off and more than tripled in a month. When such price action happens, it is obvious that Mr. Market has turned very euphoric to this name. I decided to trim but kept a reasonable position given its growth certainty.”

2. Mayville Engineering Company, Inc. (NYSE:MEC)

Number of Hedge Fund Holders: 6

1-Month Share Price Gain as of November 30: 91.28%

Mayville Engineering Company, Inc. (NYSE:MEC) is a Wisconsin-based company that operates as a contract manufacturer serving the heavy and medium duty commercial vehicle, construction equipment, power sports, agriculture, military, and other end markets in the United States. 

After posting market-beating Q3 2022 results, Mayville Engineering Company, Inc. (NYSE:MEC) updated its full-year 2022 net sales outlook of $480 million-$530 million to $520 million-$540 million. With shares up over 91% in the last month as of November 30, Mayville Engineering Company, Inc. (NYSE:MEC) is one of the best-performing growth stocks. 

On November 3, Baird analyst Mircea Dobre upgraded Mayville Engineering Company, Inc. (NYSE:MEC) to Outperform from Neutral with a price target of $15, up from $7. Multiple free cash flow headwinds are “turning to tailwinds” as Mayville Engineering Company, Inc. (NYSE:MEC)’s capex and EBITDA margin normalize and new Hazel Park capacity becomes available, the analyst told investors. The analyst said Mayville Engineering Company, Inc. (NYSE:MEC)’s new CEO is working towards operational improvement and seeking growth in adjacent verticals. The analyst now sees “meaningful upside potential” in the shares.

According to Insider Monkey’s Q3 data, 6 hedge funds were bullish on Mayville Engineering Company, Inc. (NYSE:MEC), compared to 8 funds in the earlier quarter. Thomas E. Lynch’s Mill Road Capital Management is the leading stakeholder of the company, with 229,582 shares worth $1.5 million. 

1. MINISO Group Holding Limited (NYSE:MNSO)

Number of Hedge Fund Holders: 10

1-Month Share Price Gain as of November 30: 117.06%

MINISO Group Holding Limited (NYSE:MNSO) was founded in 2013 and is headquartered in Guangzhou, China. It is an investment holding company that engages in the retail and wholesale of lifestyle and pop toy products in Asia, the Americas, and Europe. MINISO Group Holding Limited (NYSE:MNSO) shares climbed more than 117% in the last month as of November 30, making it one of the best-performing growth stocks to monitor. 

On November 14, MINISO Group Holding Limited (NYSE:MNSO) reported a FQ1 Non-GAAP EPADS of $0.19 and a revenue of $389.7 million, outperforming Wall Street estimates by $0.07 and $18.75 million, respectively. Gross margin came in at 35.7%, compared to 27.4% in the same period of 2021 and 33.3% in the prior quarter.

According to Insider Monkey’s Q3 data, 10 hedge funds were long MINISO Group Holding Limited (NYSE:MNSO), compared to 11 funds in the last quarter. Fang Zheng’s Keywise Capital Management is the leading stakeholder of the company, with nearly 3 million shares worth $16 million. 

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Disclosure: None. 10 Best-Performing Growth Stocks in November 2022 is originally published on Insider Monkey.