In this article, we discuss the 10 stocks that tripled in 2021.
2021 has been a topsy-turvy year for the market characterized by the highs of the post-pandemic economy and the lows of inflation that have repeatedly threatened to reverse the recovery tide. Even though the Gross Domestic Product (GDP) growth rate slowed down in the third quarter from a record high of 6.7% in the second quarter, most economic indicators are still positive. News platform CNN reports that industrial output in the United States is at a two-year high, corporate profits are also at record levels, and most businesses are passing supply chain costs to customers without affecting sales.
So far this year, the Dow is up 17%, the S&P 500 is up 25%, and even though labor shortages have hit the biggest firms in the world, it seems like the workers have the upper hand with respect to changes to pay structures, as indicated by union talks at companies like Amazon. Market experts say that starting bonuses and competition with regards to higher salaries has ignited a mini-revolution within the industry that will be hard to stop as employees readily quit lower paying jobs for higher paying ones.
Investors who want to position their portfolios with respect to these new developments should check out some of the equities that have managed to beat market expectations with regards to growth in the past eleven months. Some of the stocks that registered noteworthy gains this year include Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG), among others discussed in detail below.
Our Methodology
These were picked based on their year-to-date (YTD) gains. The exact YTD gain is discussed alongside analyst ratings and business fundamentals of the companies to provide readers with some context for their investment choices.
The hedge fund sentiment around each stock was calculated using the data of 867 hedge funds tracked by Insider Monkey.
Luis Louro / shutterstock.com
Stocks that Tripled in 2021
10. Signet Jewelers Limited (NYSE:SIG)
Number of Hedge Fund Holders: 33
Year-To-Date Gain: 300%
Signet Jewelers Limited (NYSE:SIG) is a specialty store that retails diamonds, watches, and other luxury products. The company recently announced that it would be acquiring Diamond Direct, a jewelry retail business, for $490 million. The deal in this regard will close by the fourth fiscal quarter of 2022.
Wells Fargo analyst Ike Boruchow recently maintained an Overweight rating on Signet Jewelers Limited (NYSE:SIG) stock and raised the price target to $120 from $100, noting that the purchase of Diamond Direct would add to the existing revenue of the company.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Select Equity Group is a leading shareholder in Signet Jewelers Limited (NYSE:SIG) with 5.2 million shares worth more than $412 million.
Just like Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG), Signet Jewelers Limited (NYSE:SIG) is one of the stocks on the radar of elite investors.
In its Q3 2020 investor letter, Miller Value Partners, an asset management firm, highlighted a few stocks and Signet Jewelers Limited (NYSE:SIG) was one of them. Here is what the fund said:
“We also saw Signet Jewelers (SIG) start to deliver improved performance during the quarter and believe their initiatives on closing unprofitable stores, expanding new Omni-channel capabilities, and launching new product offerings should begin to drive an improvement in their operations over the coming quarters. Historically, Signet’s stock price has performed very well coming out of an economic downturn. With the company valuation multiples near 2009 lows, it wouldn’t take much to see Signet’s share price double during the ongoing economic recovery. While we are highlighting the consumer space, we also wanted to mention a new investment, Chicos FAS, Inc. (CHS). The investment opportunity reminds us a lot of Bed Bath and GameStop earlier this year: a new CEO who is executing well on a new transformation plan, closing unprofitable stores, significantly streamlining and realigning their operations, and enhancing new product for their Chicos, White House Black Market, and Soma brands. Chicos has an asset-rich balance sheet, nearly $1.4B in total assets. The company’s real estate assets (land and buildings) combined with the cash on the balance sheet are significantly higher than the company’s current equity market capitalization! Over the next couple of years, the company has the potential to return to a $2B+ revenue base, which would support $100M in free cash flow. We believe a successful turnaround over the next couple of years has the potential to drive the share price 5-10x higher than current levels.”
9. Tecnoglass Inc. (NASDAQ:TGLS)
Number of Hedge Fund Holders: 12
Year-To-Date Gain: 384%
Tecnoglass Inc. (NASDAQ:TGLS) markets building products. The company recently posted earnings for the third quarter, reporting earnings per share of $0.45, beating estimates by $0.10. The revenue over the period was $130 million, up 26% year-on-year.
On November 9, investment advisory B Riley upgraded Tecnoglass Inc. (NASDAQ:TGLS) stock to Buy from Neutral and raised the price target to $37 from $25, citing market share gain and strong demand as some of the reasons behind the upgrade.
At the end of the third quarter of 2021, 12 hedge funds in the database of Insider Monkey held stakes worth $58.7 million in Tecnoglass Inc. (NASDAQ:TGLS), up from 11 in the preceding quarter worth $58.5 million.
8. SM Energy Company (NYSE:SM)
Number of Hedge Fund Holders: 24
Year-To-Date Gain: 396%
SM Energy Company (NYSE:SM) is a Colorado-based independent energy company. The stock has benefited from a record surge in oil prices over the past few weeks as demand rises amid winters and the approach of the holiday season.
RBC Capital analyst Scott Hanold has a Sector Perform rating on SM Energy Company (NYSE:SM) stock with a price target of $44. In an investor note penned recently, the analyst said the firm had an “unconventional” resource development strategy that was clouding outlook.
At the end of the third quarter of 2021, 24 hedge funds in the database of Insider Monkey held stakes worth $321 million in SM Energy Company (NYSE:SM), down from 25 in the preceding quarter worth $260 million.
7. Upstart Holdings, Inc. (NASDAQ:UPST)
Number of Hedge Fund Holders: 23
Year-To-Date Gain: 404%
Upstart Holdings, Inc. (NASDAQ:UPST) owns and runs a cloud-based lending platform that uses artificial intelligence technology. The company posted earnings for the third quarter on November 9, reporting earnings per share of $0.60, beating estimates by $0.27. The revenue over the period was $228 million, smashing expectations by $13 million.
Upstart Holdings, Inc. (NASDAQ:UPST) stock has rallied this year amid increased interest in digital banking. The CEO of the firm, Dave Girouard, said earlier this year that the company expected hundreds of banks and credit unions to operate on the Upstart platform in the coming months.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Third Point is a leading shareholder in Upstart Holdings, Inc. (NASDAQ:UPST) with 12.4 million shares worth more than $3.9 billion.
In its Q2 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and Upstart Holdings, Inc. (NASDAQ:UPST) was one of them. Here is what the fund said:
“During the quarter, we purchased Upstart Holdings Inc. Upstart is an artificial intelligence (AI) and cloud-based lending platform. The company uses AI models to underwrite superior loans with lower interest rates, lower default rates, higher approval rates, and increased underwriting automation. Consumers can access Upstart-powered loans through its banking partners’ websites; however, most of its loans are underwritten on Upstart.com. Upstart has a fee-based revenue model and retains only a small portion of the loans, while the majority of the loans end up on the balance sheets of its partner banks or are sold into the capital markets. We believe Upstart’s technology is superior to the FICO score, which is ubiquitous within the consumer credit markets. With an excellent product and a large total addressable market, we believe that Upstart’s prospects are bright.”
6. Lucid Group, Inc. (NASDAQ:LCID)
Number of Hedge Fund Holders: 18
Year-To-Date Gain: 410%
Lucid Group, Inc. (NASDAQ: LCID) makes and sells electric vehicles. The stock has soared in the past few days after the company presented an update on an EV production plan, revealing that reservations for a model vehicle had climbed to 17,000, up from 13,000 at the end of September, representing units worth $1.3 billion in value.
Lucid Group, Inc. (NASDAQ:LCID) plans to ramp up production at a facility in Arizona and is confident of making 22,000 units at the facility before the end of 2022. Analysts and investors have reacted to the news positively.
At the end of the third quarter of 2021, 18 hedge funds in the database of Insider Monkey held stakes worth $432 million in Lucid Group, Inc. (NASDAQ:LCID).
In addition to Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG), Lucid Group, Inc. (NASDAQ:LCID) is one of the stocks attracting the attention of hedge funds.
5. Dillard’s, Inc. (NYSE:DDS)
Number of Hedge Fund Holders: 22
Year-To-Date Gain: 500%
Dillard’s, Inc. (NYSE:DDS) operates retail departmental stores. The stock has rallied this year as the economic recovery released pent-up shopping demand and the holiday season, forecast to be a record one for retail companies in terms of sales, approaches.
Dillard’s, Inc. (NYSE:DDS) recently posted earnings for the third quarter, reporting earnings per share of $9.81, beating estimates by $2.49. The revenue over the period was $1.5 billion, up 43% year-on-year.
Among the hedge funds being tracked by Insider Monkey, Chicago-based firm Citadel Investment Group is a leading shareholder in Dillard’s, Inc. (NYSE:DDS) with 112,500 shares worth more than $19 million.
In its Q4 2020 investor letter, Longleaf Partners Small-Cap Fund, an asset management firm, highlighted a few stocks and Dillard’s, Inc. (NYSE:DDS) was one of them. Here is what the fund said:
“Dillard’s (-48%, -2.80%; –, –), the department store, detracted for the year. We had successfully owned the company during a downturn before and felt that we were paying a low mid-single-digit multiple on stable FCF with a great management team in charge when we first initiated the position in 2019. Our case was supported by the potential for management to monetize part of the company’s valuable owned retail real estate footprint for higher and better uses. COVID lockdowns, however, permanently impaired these values, as well as the company’s ability to go on offense with share buybacks, despite great efforts during the crisis by CEO Bill Dillard. We sold our position in the second quarter as the price-to-value gap closed and our case had changed materially.”
4. Veritiv Corporation (NYSE:VRTV)
Number of Hedge Fund Holders: 11
Year-To-Date Gain: 571%
Veritiv Corporation (NYSE:VRTV) provides packaging products and services. The company has beaten market expectations on earnings per share and revenue for the past two quarters and also raised guidance for the fiscal year, boosting investor confidence and sending the share price soaring.
Deutsche Bank analyst Nicole DeBlase recently raised the price target on Veritiv Corporation (NYSE:VRTV) stock to $32 from $30 and kept a Buy rating on the shares, appreciating the third quarter earnings results of the firm.
At the end of the third quarter of 2021, 11 hedge funds in the database of Insider Monkey held stakes worth $354 million in Veritiv Corporation (NYSE:VRTV), up from 14 in the preceding quarter worth $254 million.
3. Avis Budget Group, Inc. (NASDAQ:CAR)
Number of Hedge Fund Holders: 26
Year-To-Date Gain: 708%
Avis Budget Group, Inc. (NASDAQ:CAR) provides car and truck rentals. The short interest on the stock is at 36% but it has rallied amid interest from retail investors on Reddit who have been involved in short squeeze action heavily this year.
Avis Budget Group, Inc. (NASDAQ:CAR) has received analyst downgrades from investment advisors like Barclays, JPMorgan, and Deutsche Bank recently. The company has a market cap of $17 billion and posted $5 billion in revenue last year.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm SRS Investment Management is a leading shareholder in Avis Budget Group, Inc. (NASDAQ:CAR) with 18.4 million shares worth more than $2.1 billion.
2. GameStop Corp. (NYSE:GME)
Number of Hedge Fund Holders: 9
Year-To-Date Gain: 1,213%
GameStop Corp. (NYSE:GME) is a specialty retailer of games and entertainment products. The stock has rallied amid an increase in video game sales ahead of holiday season and announcements about movements of the company into the NFT and crypto markets.
GameStop Corp. (NYSE:GME) was involved in the most famous short squeeze of the year in January as the hedge funds suffered losses worth billions in trying to cover their short positions after the share price skyrocketed amid interest from retail investors.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in GameStop Corp. (NYSE:GME) with 2.1 million shares worth more than $373 million.
In its Q1 2021 investor letter, Rhizome Partners, an asset management firm, highlighted a few stocks and GameStop Corp. (NYSE:GME) was one of them. Here is what the fund said:
“The first quarter saw some bizarre market reactions. Game Stop is a heavily shorted legacy video game retailer that saw its stock price rise from $17 to a peak of $483 within a month. It appears that retail investors on a Reddit.com forum called WallStreetBets used memes to create a viral feedback loop of forced buying. Game Stop reached $20 billion in market cap and had more daily trading volume than Apple at one point. The Game Stop short squeeze became a black swan event for the short sellers. Large hedge funds such as Melvin Capital suffered 50% losses during a short period and required emergency capital injections that resulted in costly dilution. Shorting is difficult and introduces a risk of ruin. This is especially true in situations where a large percentage of the float is shorted. We want to remind you that we hedge our portfolio via index puts, sector puts, and sometimes buying puts directly in our own portfolio companies. However, we rarely short because 1) we are not good at it 2) the potential for brain damage is too high and 3) we want to avoid the risk of ruin.”
1. AMC Entertainment Holdings, Inc. (NYSE:AMC)
Number of Hedge Fund Holders: 17
Year-To-Date Gain: 1,845%
AMC Entertainment Holdings, Inc. (NYSE:AMC) operates in the theatrical exhibitions business. Even though cinema audiences, a key source of revenue for the company, have returned as public spaces reopen following a torrid 2020, they are still yet to reach the numbers touched in 2019 and there are debates about the relevance of cinemas in the digital world.
AMC Entertainment Holdings, Inc. (NYSE:AMC) beat market estimates on earnings per share and revenue in the third quarter and has also stepped up investments in the crypto universe as it seeks to diversify away from the theatrical business.
At the end of the third quarter of 2021, 17 hedge funds in the database of Insider Monkey held stakes worth $252 million in AMC Entertainment Holdings, Inc. (NYSE:AMC), down from 21 in the preceding quarter worth $404 million.
In its Q4 2020 investor letter, Mittleman Investment Management LLC, an asset management firm, highlighted a few stocks and AMC Entertainment Holdings, Inc. (NYSE:AMC) was one of them. Here is what the fund said:
“AMC Entertainment (AMC) was our only material loser in Q4, dropping from $4.71 to $2.12 (-55%). I planned on discussing here why it was worth at least the $10 per share that my recently reduced estimate of fair value claimed, but since then AMC raised more cash against their UK holdings and then the stock took off due to speculative players from reddit.com getting involved, so we sold it all around $14 during the last week of Jan. 2021. This was a modest profit for most clients, but a loss for some others, depending on when the account began, so check your statements to see where you came out. And yes, I recognize it as being a dose of good luck, which I heartily accept from the universe as it seemed somewhat lacking in the portfolio of late. After the sale of AMC in late January 2021, our exposure to the movie theater business is now exclusively in Canada via Cineplex, which has a 75% market share and much less leverage on its balance sheet.”
You can also take a peek at 10 Companies that Benefit From Crypto Mining and Forget Bitcoin and Ethereum: 10 Best Cryptocurrencies Redditors are Buying.
Follow Insider Monkey on Twitter
Suggested Articles:
- 15 Best Financial Stocks to Buy Now
- Reddit’s WallStreetBets is Buying these 10 Stocks for Post-Earnings Gains
- 10 Stocks Cathie Wood Is Selling
Disclosure. None. 10 Stocks that Tripled in 2021 is originally published on Insider Monkey.
