In this article, we discuss the 11 best stocks for long-term growth.
As the economy recovers post COVID-19, many investors see the surge in consumer spending and the expansion of the digital economy as megatrends that are bullish for stocks. Household savings in the United States are near historic highs and the cash on hand at S&P 500 companies is already at an all-time high of $2 trillion. These trends indicate a greater capacity for both consumers and companies to borrow and spend in the market.
Even though growth stocks are currently under pressure, investing in stocks with long-term potential could certainly pay off in the future. That’s why investors like Cathie Wood are investing millions in growth stocks with solid product pipelines.
Although stocks like Apple Inc. (NASDAQ: APPL), Tesla Inc. (NASDAQ: TSLA), Uber Technologies, Inc. (NYSE: UBER), Amazon.com, Inc. (NASDAQ: AMZN) and NVIDIA Corporation (NASDAQ: NVDA) are performing well, they are expensive, especially for beginner investors who are starting out with limited budget. We have compiled a list of 11 best stocks for long term growth that are cheaper to buy right now and offer long-term growth potential.
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Our Methodology
To identify these stocks, we carried out an in-depth study of their growth potential. We also took into account hedge fund sentiment while choosing these stocks.
Why should we use hedge fund sentiment to choose stocks? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
With this context in mind, let’s now discuss our list of the 11 best stocks for long-term growth.
11. Cresco Labs Inc. (OTC:CRLBF)
No. of Hedge Fund Holders: N/A
Cresco Labs Inc. (OTC: CRLBF), headquartered in Chicago, Illinois, is a cannabis and medical marijuana producer. The firm makes a variety of cannabis extracts and vape products. The company is eleventh on our list of 11 best stocks for long term growth
It is an appealing investment because it is one of the leading cannabis multi-state operators (MSOs). This company is a major marijuana wholesaler, with its branded products accounting for more than half of all sales. At the end of the second quarter of 2021 Cresco Labs Inc. (OTC: CRLBF) reported revenue of $210 million, an increase of 128% year over year. The company reported gross profit of $107 million in the second quarter of 2021, an increase of 22.2% quarter over quarter. Similarly, the company generated net income of $2.7 million in the second quarter of 2021, an increase of $44 million year over year.
On August 5, investment advisory Canaccord upgraded Cresco Labs Inc. (OTC: CRLBF) stock to Buy from Speculative rating with a price target of C$19, appreciating the company’s strong fundamental performance in the US.
Just like Apple Inc. (NASDAQ: APPL), Tesla Inc. (NASDAQ: TSLA), Uber Technologies, Inc. (NYSE: UBER), Amazon.com, Inc. (NASDAQ: AMZN) and NVIDIA Corporation (NASDAQ: NVDA), Cresco Labs Inc. (OTC: CRLBF) is attracting investor attention because of its long-term growth.
10. The Valens Company Inc. (OTC:VLNCF)
No. of Hedge Fund Holders: N/A
The Valens Company Inc. (OTC: VLNCF) is a certified provider of cannabis extraction, purification, formulation, and manufacturing services based in Canada. The company is tenth on our list of 11 best stocks for long term growth.
On June 24, investment advisory Desjardins kept a Buy rating on Valens (OCT: VLNC) stock and increased the price target to C$4.25 from C$3.75 as reported by its analyst John Chu.
In recent months, The Valens Company Inc. (OTC: VLNCF) shares have considerably outpaced the overall cannabis market. In 2021, the stock increased by more than 50%. The company reported revenue of $17.5 million at the end of the second quarter, up 9.2% from the same quarter previous year. At the end of the second quarter of 2021, the company’s balance sheet looked good with $51.9 million in cash, cash equivalents, and short-term deposits and no debt.
The Valens Company Inc. (OTC: VLNCF) diversified extraction operation will scale with the market, allowing it to provide a wide range of oil-based product, which will drive aggregate cannabis growth while flower-based product demand declines. The company’s revenue mix is shifting due to the shift to Cannabis 2.0 and the increase of derivative products. The business is expanding its production capabilities and focusing on the white label sector.
9. Verb Technology Company, Inc. (NASDAQ:VERB)
No. of Hedge Fund Holders: 3
Verb Technology Company, Inc. (NASDAQ: VERB), situated in Newport Beach, California, designs and develops software applications. The company is ninth on our list of 11 best stocks for long term growth. The company’s Software-as-a-Service (SaaS) platform is built on its own interactive video technology. Its software applications like verbCRM, verbLIVE, verbTEAMS, verbLEARN and verbMAIL are available in over 60 countries. The company is tenth on our list of 11 best stocks for long term growth.
On July 27, investment advisory Alliance Global Partners kept a Buy rating on Verb Technology Company, Inc. (NASDAQ: VERB) stock and increased the price target to $4 from $2.75, appreciating the company’s marketplace position.
In July, Verb Technology Company, Inc. (NASDAQ: VERB) released verbMAIL for general commercial use. This new product was created in close collaboration with Microsoft’s Global Partner Solutions. The product is a combination of Verb Technology Company, Inc. (NASDAQ: VERB) interactive video capabilities into Microsoft Outlook. VerbMAIL enables Outlook users to record or submit any video.
Our data shows that Millennium Management is one of the biggest stakeholders of Verb Technology Company, Inc. (NASDAQ: VERB) with 273,806 shares worth $561,000.
At the end of the second quarter of 2021, 3 hedge funds in the database of Insider Monkey held stakes worth $710,000 in Verb Technology Company, Inc. (NASDAQ: VERB).
8. Atossa Therapeutics, Inc. (NASDAQ:ATOS)
No. of Hedge Fund Holders: 5
Atossa Therapeutics, Inc. (NASDAQ: ATOS) is a biopharmaceutical firm developing treatments for cancer and other infectious diseases. The company is currently working on breast cancer and COVID-19. The company is eighth on our list of 11 best stocks for long term growth
At the end of the second quarter of 2021, Atossa Therapeutics, Inc. (NASDAQ: ATOS) reported success from Phase 2 clinical study of oral Endoxifen given to patients suffering from breast cancer. The drug is administered during a favorable time period between breast cancer diagnosis and surgery. Results revealed that the tumor cell activity at the time of surgery reduced by 61.5%. The company had about $142.5 million in cash and cash equivalents at the end of the second quarter of 2021.
In July, Australian regulators permitted Atossa Therapeutics, Inc. (NASDAQ: ATOS) to start a clinical trial for AT-H201. This drug is intended for the treatment of COVID-19.
Our data shows that Millennium Management is one of the biggest stakeholders of Atossa Therapeutics, Inc. (NASDAQ: ATOS) with 1.7 million shares worth $10.5 million.
At the end of the second quarter of 2021, 5 hedge funds in the database of Insider Monkey held stakes worth $19.2 million in Atossa Therapeutics, Inc. (NASDAQ: ATOS), down from 6 the preceding quarter worth $7.8 million.
7. BioLineRx Ltd. (NASDAQ:BLRX)
No. of Hedge Fund Holders: 5
BioLineRx Ltd. (NASDAQ: BLRX) is a biopharmaceutical firm specializing in oncology. The company is seventh on our list of 11 best stocks for long term growth
On May 4, investment advisory Maxim kept a Buy rating on BioLineRx Ltd. (NASDAQ: BLRX) stock and raised the price target to $10 from $5, following announcement of top-line results from the company.
In May, BioLineRx Ltd. (NASDAQ: BLRX) reported convincing results from the ongoing GENESIS Phase 3 trial of motixafortide for stem cell mobilization in patients suffering from multiple myeloma. In response to the positive results, the stock rocketed over 100%. The company is trying to submit a non-disclosure agreement (NDA). If approved the company will have a commercial stage molecule in stem cell mobilization (SCM).
BioLineRx Ltd. (NASDAQ: BLRX) had $66 million in cash and cash equivalents at the end of the second quarter of 2021. Research and development expenses at the end of the second quarter of 2021 were $5.1 million, up $0.5 million compared to $4.6 million in the same period last year.
Our data shows that Parkman Healthcare Partners is one of the biggest stakeholders of BioLineRx Ltd. (NASDAQ: BLRX) with 734,032 shares worth $2.1 million
6. Village Farms International, Inc. (NASDAQ:VFF)
No. of Hedge Fund Holders: 6
Village Farms International, Inc. (NASDAQ: VFF) is an agricultural company established in Canada. The company also produces cannabis. The company is sixth on our list of 11 best stocks for long term growth.
Balanced Health Botanicals, a cannabidiol company based in Colorado, was recently purchased for $75 million by Village Farms International, Inc. (NASDAQ: VFF). It’s the latest step by the company toward cannabis cultivation. The company recorded $70.37 million in revenue in the second quarter of 2021, up 47.9% year over year. Pure Sunfarms, its subsidiary, generated $24.7 million in revenue in the second quarter of 2021, up 136% year over year.
VF Clean Energy, Inc, a subsidiary of Village Farms International, Inc. (NASDAQ: VFF), owns and operates a seven-megawatt landfill gas power plant. It sells electricity to the British Columbia Hydro and Power Authority and creates electricity for its greenhouses.
On September 19, investment advisory BMO Capital initiated coverage of Village Farms International, Inc. (NASDAQ: VFF) stock with an Outperform rating and a price target of $16, appreciating the company’s competitive cost structure.
Our data shows that Alyeska Investment Group is one of the biggest stakeholders of Village Farms International, Inc. (NASDAQ: VFF) with 302,289 shares worth $3.2 million.
At the end of the second quarter of 2021, 6 hedge funds in the database of Insider Monkey held stakes worth $11.1 million in Village Farms International, Inc. (NASDAQ: VFF), down from 8 the preceding quarter worth $35.6 million.
Just like Apple Inc. (NASDAQ: APPL), Tesla Inc. (NASDAQ: TSLA), Uber Technologies, Inc. (NYSE: UBER), Amazon.com, Inc. (NASDAQ: AMZN) and NVIDIA Corporation (NASDAQ: NVDA), Village Farms International, Inc. (NASDAQ: VFF) is attracting investor attention because of its long-term growth.
5. Sundial Growers Inc. (NASDAQ:SNDL)
No. of Hedge Fund Holders: 10
Sundial Growers Inc. (NASDAQ: SNDL) is a firm that makes and sells cannabis products. Its dried flower cannabis products are available in a variety of formats, including pre-rolls, oils and capsules. The company is fifth on our list of 11 best stocks for long term growth.
On May 13, investment advisory Canaccord Genuity upgraded Sundial Growers Inc. (NASDAQ: SNDL) stock to Hold from Sell rating and increased the price target to 70c from 65c, citing that the company was trading near implied valuation.
In May, Sundial Growers Inc. (NASDAQ: SNDL) entered into an arrangement with Inner Spirit Holdings to acquire Inner Spirit for total consideration of around $131 million. The combined firm will continue to focus on supplying high-quality cannabis to customers in a safe and disciplined manner, while also creating long-term value for shareholders.
Sundial Growers Inc. (NASDAQ: SNDL) reported that in the second quarter of 2021, net sales from branded cannabis products were $7.3 million, up from $7.2 million in the previous quarter. The company had $885 million in unrestricted cash at the end of the second quarter of 2021.
Our data shows that Renaissance Technologies is one of the biggest stakeholders of Sundial Growers Inc. (NASDAQ: SNDL) with 70.9 million shares worth $67.3 million.
At the end of the second quarter of 2021, 10 hedge funds in the database of Insider Monkey held stakes worth $76.6 million in Sundial Growers Inc. (NASDAQ: SNDL), up from 7 the preceding quarter worth $18.8 million.
4. Seelos Therapeutics, Inc. (NASDAQ: SEEL)
No. of Hedge Fund Holders: 13
Seelos Therapeutics, Inc. (NASDAQ: SEEL) develops treatments for illnesses associated with the central nervous system and other uncommon diseases. The company is fourth on our list of 11 best stocks for long term growth. SLS-002 (racemic ketamine), the company’s most capable product, has a lot of capacity to treat acute suicidal ideation behaviour (ASIB) in major depressive disorders (MDD). This company claims that share price will triple if SLS-002 gets FDA approval.
Seelos Therapeutics, Inc. (NASDAQ: SEEL) licensed gene therapy product, SLS-004, is used to treat Parkinson’s disease patients. By 2025, the global anti-Parkinson’s drugs market is anticipated to be worth $7.78 billion.
On July 1, investment advisory Guggenheim kept a Buy rating on Seelos Therapeutics, Inc. (NASDAQ: SEEL) stock with a price target of $8, giving a positive view on the company’s principal product used in treatment of acute suicidal ideation and behavior.
Our data shows that Woodline PartnersKarl is one of the biggest stakeholders of Seelos Therapeutics, Inc. (NASDAQ: SEEL) with 3 million shares worth $8 million.
At the end of the second quarter of 2021, 13 hedge funds in the database of Insider Monkey held stakes worth $39.5 million in Seelos Therapeutics, Inc. (NASDAQ: SEEL), up from 11 the preceding quarter worth $47.2 million.
3. Agenus Inc. (NASDAQ:AGEN)
No. of Hedge Fund Holders: 13
Agenus Inc. (NASDAQ: AGEN) is a biotechnology company based in Lexington, Massachusetts, that specializes in immunotherapy. The company develops checkpoint antibodies, cell therapies and vaccines to fight cancer. Agenus Inc. (NASDAQ: AGEN) had a cash balance of $74 million at the end of the second quarter of 2021. The company is third on our list of 11 best stocks for long term growth.
On September 7, investment advisory B. Riley kept a Buy rating on Agenus Inc. (NASDAQ: AGEN) stock and increased the price target to $12 from $11, stating that the company is set for a breakthrough in becoming an important immuno-oncology player.
In May, Bristol-Myers Squibb Co. agreed to pay Agenus Inc. (NASDAQ: AGEN) up to $1.56 billion for the rights to a new type of experimental cancer-fighting drug that relies on the body’s immune system.
Our data shows that Millennium Management is one of the biggest stakeholders of Agenus Inc. (NASDAQ: AGEN) with 5.6 million shares worth $30.9 million.
At the end of the second quarter of 2021, 13 hedge funds in the database of Insider Monkey held stakes worth $80.6 million in Agenus Inc. (NASDAQ: AGEN), up from 12 the preceding quarter worth $48.9 million.
2. Senseonics Holdings, Inc. (NYSE: SENS)
No. of Hedge Fund Holders: 16
Senseonics Holdings, Inc. (NYSE: SENS), headquartered in Maryland, United States, is a medical technology firm with prime focus on making glucose monitoring systems. The company is second on our list of 11 best stocks for long term growth. Eversense, the company’s main product, is a glucose monitoring gadget that combines a sensor, smart transmitter, and mobile application.
On August 19, investment advisory H.C. Wainwright initiated coverage of Senseonics Holdings, Inc. (NYSE: SENS) with a Buy rating and a price target of $6, appreciating the company’s lead product Eversense as the only continuous glucose monitoring device available in US and Europe.
In September, Senseonics Holdings, Inc. (NYSE: SENS), in partnership with Ascensia, announced that the University Hospitals Accountable Care Organization (UHACO) in Cleveland has started providing its Medicare enrollees with Eversense CGM System. Eversense sales are expanding globally as a result of collaboration. The company’s total revenue in the second quarter of 2021 was $3.29 million, up from $0.26 million in the second quarter of 2020. Gross profit increased by $1.54 million to $0.39 million in the second quarter of 2021.
Our data shows that Masters Capital Management is one of the biggest stakeholders of Senseonics Holdings, Inc. (NYSE: SENS) with 7 million shares worth $26.9 million.
At the end of the second quarter of 2021, 16 hedge funds in the database of Insider Monkey held stakes worth $67.6 million in Senseonics Holdings, Inc. (NYSE: SENS), up from 12 the preceding quarter worth $39 million.
1. Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX)
No. of Hedge Fund Holders: 16
Catalyst Pharmaceuticals, Inc. (NASDAQ: CPRX), founded in 2002, is a Florida-based biopharma company. The company develops treatments for neuromuscular and neurological illnesses that are rare and debilitating. The company is first on our list of 11 best stocks for long term growth
On August 10, investment advisory Piper Sandler kept an Overweight rating on Catalyst Pharmaceuticals, Inc. (NASDAQ: CPRX) stock and increased the price target to $6.5 from $5.5, citing that the company continues to generate cash flow.
Catalyst Pharmaceuticals, Inc. (NASDAQ: CPRX) developed Firdapse, a drug to treat lambert-eaton myasthenic syndrome (LEMS). At the end of the second quarter of 2021 the company reported net revenue of $36.4 million, up 23% from the same quarter previous year. Firdapse generated $33.6 million in total revenue at the end of the second quarter of 2021, up $ 29.6 million from the same quarter previous year. The company is all set to market this product in Japan and Canada.
Our data shows that Armistice Capital is one of the biggest stakeholders of Catalyst Pharmaceuticals, Inc. (NASDAQ: CPRX) with 10 million shares worth $57.6 million.
At the end of the second quarter of 2021, 16 hedge funds in the database of Insider Monkey held stakes worth $92.1 million in Catalyst Pharmaceuticals, Inc. (NASDAQ: CPRX), up from 13 the preceding quarter worth $75 million.
You can also take a peek at 10 Best High-Yield Dividend Stocks According to Billionaire Mario Gabelli and 10 Best Safe Dividend Stocks According to Billionaire Dan Loeb.
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Disclosure. None.11 Best Stocks for Long Term Growth is originally published on Insider Monkey.
