12 Best Get Rich Quick Stocks To Buy

In this article, we will take a look at the 12 best get rich quick stocks to buy.

During times of high uncertainty, some experts recommend taking the short-term view instead of the long-term view to make quick money. The global economic developments taking place could propel stocks to bounce back from depressed levels and soar to new highs. Given the prevalent inflation rates hovering around a four-decade high, the Federal Reserve could be driven to increase benchmark interest rates aggressively to cool down the economy. The expectation of a rising benchmark interest rate makes the equity market very volatile with lower growth clarity, which is not favorable for stocks in the long term. However, it provides opportunities for investors to take advantage of the depressed stock prices and yield substantial returns in the near future.

On December 2, the US Department of Labor reported that 263,000 new jobs were created in November 2022, as opposed to a consensus forecast of 200,000 jobs only. Despite the Fed’s repeated rate hikes, the labor market has been remarkably robust, creating 323,000 jobs on average over the past six months. Credit card interest rates are at an all-time peak and are still rising. The cost of auto loans is at an 11-year high, while a 15-year peak has been reached for home equity lines of credit. According to Greg McBride, chief financial analyst at Bankrate, the yields on online savings accounts and certificates of deposit haven’t been this high since 2008. Stocks like PayPal Holdings, Inc. (NASDAQ:PYPL), Shopify Inc. (NYSE:SHOP), and Sea Limited (NYSE:SE) are also attracting hedge fund investment as investors look to protect their savings and earn strong returns.

Photo by Ruben Sukatendel on Unsplash

Our Methodology

We have shortlisted these stocks based on positive short-term catalysts that could propel stock prices and yield healthy returns to investors. Some of the picks in this article are buy-on-the-dip calls, as these stocks have lost significant value in the past few months but still have a viable business model that could aid the stock price to bounce back. Meanwhile, some stocks are on the rise due to positive investor sentiments following favorable macroeconomic developments. The stocks have been ranked according to the level of hedge fund ownership as of Q3 2022.

 Best Get Rich Quick Stocks To Buy

12. Niu Technologies (NASDAQ:NIU)

Number of Hedge Fund Holders: 9

Niu Technologies (NASDAQ:NIU) is a Changzhou, China-based manufacturer of electric scooters founded in 2014.

Niu Technologies (NASDAQ:NIU) stock has lost 68% of its value since the start of the year. Analysts think the stock is in a strong position for a bounce back following the ease of COVID-19-related restrictions in China. In a research note issued on December 5, Beatrice Lam at Citi gave Niu Technologies (NASDAQ:NIU) stock a target price of $6.70 with a Buy rating. The target price reflects a potential upside of over 32% from the closing price as of December 20. During the current period of high inflation, when people want to spend less on their commute, Niu Technologies enable this by offering various models of urban commuter bikes. The company’s newest electric bike has a top speed of 28 miles per hour (mph) and a range of 40 to 60 miles.

As of Q3 2022, Niu Technologies (NASDAQ:NIU) was held by 9 hedge funds.

11. TopBuild Corp. (NYSE:BLD)

Number of Hedge Fund Holders: 19

TopBuild Corp. (NYSE:BLD) is a Daytona Beach, Florida-based company that is involved in the installation and distribution of commercial, industrial, and residential building and insulation materials.

As the US is experiencing a very harsh winter, the demand for insulation services is on the rise, playing in favor of TopBuild Corp. (NYSE:BLD). The positive development was reflected in Q3 2022 results as the company saw its revenue increase by 53.7% YoY to $1.3 billion, which surpassed the consensus forecast of $1.21 billion. Meanwhile, the adjusted EPS of $4.76 was 66 cents higher than the analysts’ forecast of $4.10. The positive results prompted the company to provide FY22 revenue guidance of $4.95 billion to $5 billion as compared to analysts’ forecast of $4.86 billion.

TopBuild Corp. (NYSE:BLD) was held by 19 hedge funds at the end of Q3 2022.

10. Saia, Inc. (NASDAQ:SAIA)

Number of Hedge Fund Holders: 19

Saia, Inc. (NASDAQ:SAIA) is a Johns Creek, Georgia-based logistics and less-than-truckload (LTL) trucking company.

Experts have a positive outlook on transportation stocks in 2023 as they see a bottom in the earnings cycle achieved in Q2 2023. The cycle is expected to be followed by a lengthy period of YoY growth. Based on this development, Amit Mehrotra at Deutsche Bank increased the target price for Saia, Inc. (NASDAQ:SAIA) from $281 to $296 and maintained a Buy rating on the stock. The target price reflects an upside potential of over 29% from the closing price as of December 20. The analyst has highlighted Saia, Inc. (NASDAQ:SAIA) stock as one of the top five picks from the transportation sector for 2023. Jack Hough at Barron’s has highlighted Saia, Inc. (NASDAQ:SAIA) as one of the stocks in the small-cap universe set for significant gains in the near future as the stock is trading at its lowest P/E ratio in years.

Wasatch Global Investors shared its bullish outlook on Saia, Inc. (NASDAQ:SAIA) in its Q3 2022 investor letter. Here’s what the firm said:

“Regarding purchases, we established a position in Saia, Inc. (NASDAQ:SAIA), a transport company the creates efficiencies by combining goods—from multiple shippers—that alone would fill “less than a full truckload.” Amid ongoing supply-chain challenges, we think Saia’s specialized logistics capabilities will be in especially high demand.”

9. H&R Block, Inc. (NYSE:HRB)

Number of Hedge Fund Holders: 24

H&R Block, Inc. (NYSE:HRB) is a Kansas City, Missouri-based company that provides tax preparation services.

H&R Block, Inc. (NYSE:HRB) has the distinction of preparing 800 million tax returns across the world since its inception. The company’s competitive advantage grew more clear as robust cash flow generation in the latest quarter supported an appealing dividend and a degree of share repurchases uncommon in today’s markets. Analysts confidently predict future sales growth and mid-single-digit EPS increase for H&R Block, Inc. (NYSE:HRB). H&R Block, Inc. (NYSE:HRB) is an ideal example of a high-quality company that trades at an attractive price and can provide downside protection in challenging equity markets. The stock offers a forward dividend yield of 2.93% as of December 20.

Here’s what Miller Value Partners said about H&R Block, Inc. (NYSE:HRB) in its Q2 2022 investor letter:

“H&R Block (NYSE:HRB) was the top contributor for the quarter, gaining 36.0%. H&R Block reported 3Q22 revenue of $2.1 billion, +3.9% year-over-year (Y/Y), ahead of consensus of $1.9 billion, and Adjusted Earnings Per Share (EPS) of $4.11, unchanged from 3Q21 EPS, ahead of analyst expectations for EPS of $3.75. The company repurchased 10 million shares for $226 million in the quarter, bringing total fiscal-year 2022 (FY22) share repurchases to $550 million, representing 13% of the company’s shares outstanding. Management also increased its FY22 guidance for revenue of $3.38-3.43 billion, up 3.0% from prior guidance of $3.25-3.35 billion at the midpoint, and EBITDA of $850-875 million (Enterprise Value (EV)/EBITDA of ~8.4x), up 9.2% from prior guidance of $765-815 million at the midpoint. H&R Block’s new mobile banking platform, Spruce, which launched in January, has shown encouraging progress so far, accumulating 150k customer signups and $60 million in customer deposits as of 4/30/22.

8. UiPath Inc. (NYSE:PATH)

Number of Hedge Fund Holders: 26

UiPath Inc. (NYSE:PATH) is a New York-based corporation that is known for creating robotic process automation software.

Robotics is a key theme in the future that has received impetus due to the rollout of high-speed 5G connectivity. Terry Tillman at Truist sees UiPath Inc. (NYSE:PATH) stock offering a potential upside of more than 60% from the closing price as of December 20. In an update issued to investors on December 2, Mr. Tillman assigned UiPath Inc. (NYSE:PATH) stock a target price of $20 with a Buy rating after the company reported its preliminary Q3 2022 results and initiated a cost reduction program. The analyst highlighted that UiPath Inc. (NYSE:PATH) is making headways in improving its sales and annual recurring revenue (ARR) by transforming its go-to-market (GTM) strategy, innovations related to pricing and packaging, and developing new partnerships.

ARK Investment Management raised its stake in UiPath Inc. (NYSE:PATH) during Q3 2022.

7. United Microelectronics Corporation (NYSE:UMC)

Number of Hedge Fund Holders: 27

United Microelectronics Corporation (NYSE:UMC) is a Hsinchu, Taiwan-based semiconductor company with one of the biggest foundries in the world that supplies semiconductors to notable companies like Intel Corporation (NASDAQ:INTC), Qualcomm Incorporated (NASDAQ:QCOM), and Texas Instruments Incorporated (NASDAQ:TXN).

Taiwan is responsible for manufacturing more than 50% of the chips globally, and United Microelectronics Corporation (NYSE:UMC) is a notable player in the industry. The stock also offers an attractive one-year forward dividend yield of 6.78% as of December 20. United Microelectronics Corporation (NYSE:UMC) is experiencing a utilization rate of over 100% even after the company grew its fab capacity to 2.539 million 8-inch equivalent wafers as opposed to 2.383 million 8-inch equivalent wafers a year ago. United Microelectronics Corporation (NYSE:UMC) stock is trading at an attractive forward P/E multiple of 9.29x and hovering around a five-year low, making it a good stock to go long on.

Two Sigma Advisors increased its stake in United Microelectronics Corporation (NYSE:UMC) by 117% during Q3 2022.

6. Asbury Automotive Group, Inc. (NYSE:ABG)

Number of Hedge Fund Holders: 34

Asbury Automotive Group, Inc. (NYSE:ABG) is a Duluth, Georgia-based company that has the distinction of being one of the biggest automobile retailers in the US through its network of 140 dealerships spread across 15 states. Furthermore, the company has an online car-buying platform called Clicklane.

Asbury Automotive Group, Inc. (NYSE:ABG) is working on enhancing shareholder returns by allocating its resources to expand operations and aggressively buyback its stock as well. The dealership market is very fragmented, with 93.5% of the dealerships having a network of one to five locations only. Only 0.1% of the dealers have 50 or more locations. This provides a company like Asbury Automotive Group, Inc. (NYSE:ABG) the opportunity to grow its operations through the acquisition of smaller players. The auto dealership industry is transforming as more dealers are selling vehicles through online mediums, which offers an attractive avenue for expansion.

Bonhoeffer Capital Management shared its outlook on Asbury Automotive Group, Inc. (NYSE:ABG) in its Q3 2022 investor letter. Here’s what the firm said:

“One of our holdings in the distribution theme is Asbury Automotive Group, Inc. (NYSE:ABG), an automobile dealership firm. Asbury’s growth model is through same-store sales growth (4% per year), internet distribution (10% per year), and synergistic M&A (5% per year). These are enhanced by opportunistic operational leverage from scale and share repurchases (5% annual growth). Over the past 10 years, Asbury’s net income margins are up 120% with a 5x increase in revenues. These factors should lead to about a 20% EPS growth going forward. Ashtead has had 19% and 31% EPS growth over the past five and 10 years, respectively.

As can be seen below, a large portion of future growth is based upon the growth of internet sales. Both Asbury and Lithia have internet strategies which capture a younger demographic who do not visit dealerships with the same frequency as older folks. Asbury, through its online platform Clicklane, has found internet purchasers have very little overlap with existing customers; 95% are new customers. Asbury’s strategy is to target customers who are within 20 miles of an existing Asbury location vs. online only competitors (like Carvana) and Lithia. Asbury has had a per-store growth rate of 67% over the last year and only sells cars online in about 60% of its current footprint. This growth rate will decline going forward as the markets mature, but it will be bolstered as Clicklane is rolled out to the remaining 40% of Asbury’s footprint…” (Click here to read the full text)

In addition to Asbury Automotive Group, Inc. (NYSE:ABG), PayPal Holdings, Inc. (NASDAQ:PYPL), Shopify Inc. (NYSE:SHOP), and Sea Limited (NYSE:SE) are also some of the stocks attracting hedge fund investment currently.

5. Etsy, Inc. (NASDAQ:ETSY)

Number of Hedge Fund Holders: 45

Etsy, Inc. (NASDAQ:ETSY) is a New York-based e-commerce platform that is known for selling craft supplies and handmade vintage items.

Etsy, Inc. (NASDAQ:ETSY) is on a rising trend as it has experienced a surge of over 37% in the last month, as opposed to the S&P 500 Index’s rise of only 4.5% during the same period. The stock is a contrarian pick on our list, given the high level of uncertainty expected to impact the discretionary spending of the customers. However, there is a widespread belief that the company has been able to stabilize its active customers and trends related to gross merchandise sales (GMS) despite the tough economic challenges. Furthermore, experts believe that Etsy, Inc. (NASDAQ:ETSY) is set up for favorable Q4 2022 results with further opportunities to experience an expansion of multiples. In a research note issued on December 1, Marvin Fong at BTIG increased the price target on Etsy, Inc. (NASDAQ:ETSY) from $119 to $137 and reiterated a Buy rating based on these developments.

Here’s what ClearBridge Investments said about Etsy, Inc. (NASDAQ:ETSY) in its Q3 2022 investor letter:

“Stock selection in the consumer discretionary sector proved a tailwind to performance. Etsy (NASDAQ:ETSY), which operates a number of online marketplaces for craft and artisan goods, delivered second quarter results that demonstrated the company’s pricing power, cash flow generation, and margin upside remain intact. While Etsy is experiencing declines in gross merchandise sales, it is seeing better than expected take rates and improved margins. We believe the company is well-positioned to grow advertising spending on its marketplace, bring in new buyers and strengthen its e-commerce advantages.”

4. Builders FirstSource, Inc. (NYSE:BLDR)

Number of Hedge Fund Holders: 49

Builders FirstSource, Inc. (NYSE:BLDR) is a Dallas, Texas-based manufacturer and supplier of building materials. The company, founded in 1998, is a member of the Fortune 500 companies and is the biggest supplier of structural building products in the US.

On November 28, Builders FirstSource, Inc. (NYSE:BLDR) announced a share buyback plan of $1 billion that has increased the company’s overall share buyback plan to $1.5 billion. This is equivalent to 16% of the current market capitalization of the company. Builders FirstSource, Inc. (NYSE:BLDR) was assigned a target price of $80 along with an Outperform rating by David Manthey at Baird on November 17. The analyst highlighted that the organic growth remained strong for the company during Q3 2022. Despite the mortgage rate surpassing the 7% level, the growth prospects of Builders FirstSource, Inc. (NYSE:BLDR) remain strong.

Here’s what Praetorian Capital said about Builders FirstSource, Inc. (NYSE:BLDR) in its Q3 2022 investor letter:

“Builders FirstSource, Inc. (NYSE:BLDR) produces and distributes building materials, primarily for the home building industry. It trades at a low-single digit cash flow multiple on recent earnings and is using that cash flow to rapidly repurchase shares. One could say that the low multiple is due to peak cyclical earnings. I take a different view and believe that we’re in the early stages of a long-term housing boom caused by migration to low tax states along with a catch-up phase as home construction rates were below trendline over the past decade. I believe that the US needs in excess of 1 million new single-family homes each year, just to provide for population growth, ignoring the other factors. As a result, this business does not appear to be at peak earnings; instead, I believe we are seeing a new baseline for earnings—though the earnings will be quite volatile—particularly if interest rates remain elevated or increase further.”

3. Sea Limited (NYSE:SE)

Number of Hedge Fund Holders: 55

Sea Limited (NYSE:SE) is a Singapore-based game development and publishing corporation. The company is known for coming up with the Free Fire title, which became the most downloaded mobile game in 2019 and had over 150 million daily active users (DAUs).

In a research note issued on November 17, Mark Goodridge at Morgan Stanley gave Sea Limited (NYSE:SE) a target price of $95 along with an Overweight rating. The target price provides a potential upside of more than 58% as of December 20. The analyst appreciated the company’s Q3 2022 results, which reflected a solid beat and showed a clear pathway to profitability for Sea Limited’s (NYSE:SE) subsidiary Shopee, which is the biggest e-commerce platform in the Southeast Asia region with over 343 million monthly active users (MAUs). There is a widespread belief that the subsidiary of Sea Limited (NYSE:SE) is in a strong position to dominate the e-commerce space in the region.

Here’s what Hayden Capital said about Sea Limited (NYSE:SE) in its Q3 2022 investor letter:

“Sea Limited (NYSE:SE) reported earnings last week, after which the share price rebounded +36% in a single day. The most obvious question that comes to mind, is why didn’t we sell more last year, when prices were still high? The truth is that we did sell a significant amount, but in hindsight obviously wish we were more aggressive with the sales.

For example, we owned the peak number of shares of Sea Ltd in Q1 2020, and steadily trimmed over the next two years. From Q1 2020 to Q1 2022, we trimmed ~39% of our shares over that period. However, the issue was that the investment continued to grow as a percentage of the overall portfolio, since the share price appreciated much faster than our sales (+620% from 1Q20 to 3Q21). This was a similar case for our other long-tenured positions as well.

So why didn’t we trim more aggressively and just hold cash? The answer is that at its core, I believe that holding cash is implicitly a market timing call. I certainly didn’t foresee a likely recession on the horizon so quickly after the turbulence of Covid already had on the economy. Even in late 2021, after it was clear interest rates would start rising, we were still operating under the assumption that rates would cause valuations to compress, but likely wouldn’t have an impact on the overall earnings trajectory. Given our expectations for strong earnings growth, we thought this could more than offset the valuation compression over time, and would still generate strong IRRs over a 3 – 5 year timeframe…” (Click here to see the full text)

2. Shopify Inc. (NYSE:SHOP)

Number of Hedge Fund Holders: 62

Shopify Inc. (NYSE:SHOP) is an Ottawa, Canada-based company known for its proprietary e-commerce platform for establishing online stores. Furthermore, the company is a provider of a point-of-sales system for retailers as well.

Samad Samana at Jefferies thinks that the company’s Q4 2022 gross merchandise value (GMV) is expected to come in ahead of consensus based on the Blessed Friday and Cyber Monday GMV numbers revealed by the company. Shopify Inc. (NYSE:SHOP) reported a GMV of $7.5 billion during this period, reflecting a 19% YoY growth. Based on this, the analyst anticipates Shopify Inc. (NYSE:SHOP) to post a GMV of $64 billion during Q4 2022, which is significantly higher than the consensus forecast of $59 billion. Based on this, the analyst has given Shopify Inc. (NYSE:SHOP) stock a Buy rating and a target price of $40 on November 29.

Here’s what Artisan Partners said about Shopify Inc. (NYSE:SHOP) in its Q3 2022 investor letter:

“Shopify Inc. (NYSE:SHOP) is a leading e-commerce platform supporting over 2 million merchants with software, online storefronts and payments technology. Like Uber, Shopify returned to mid-cap territory during Q2 as the company’s profit cycle and share price have faced significant pressure. Earlier this year, the company began a phase of investments to support a range of future growth drivers, including Shopify Plus for larger brands, logistics services, international expansion, point-of-sale payments and social media-based commerce. With high inflation putting pressure on consumer spending, and with e-commerce activity normalizing after a massive pandemic spike, Shopify’s earnings have fallen sharply. While we have outstanding questions about the likelihood of success for the company’s capital-intensive logistics investments, we decided to take advantage of the stock’s >75% YTD decline and initiate a GardenSM position at a deep discount to our PMV estimate. Our thesis is predicated on our belief there is still a long runway for commerce to move online, and Shopify is well-positioned to win share of this market. The company has created an ecosystem of products (payment processing, financing, shipping, customer engagement tools, etc.), partners (TikTok, Google, Meta), sales channels and over 6,000 apps to help its merchants sell online and establish direct relationships with customers.”

1. PayPal Holdings, Inc. (NASDAQ:PYPL)

Number of Hedge Fund Holders: 126

PayPal Holdings, Inc. (NASDAQ:PYPL) is a Palo Alto, California-based financial technology company that operates as an online payment system. The company has an edge in the fintech industry due to its high brand equity and is expected to be a key beneficiary of the rising trend of the gig economy.

Moshe Katri at Wedbush surveyed the payment platforms using the Black Friday and Cyber Monday period and found out that PayPal Holdings, Inc. (NASDAQ:PYPL) dominated as the payment gateway. The survey revealed that 34.9% of online payment was done by either PayPal or Venmo. Furthermore, the Buy Now Pay Later (BNPL) mechanism is also gaining traction as its share increased from 5.6% in 2021 to 7.9% in 2022. PayPal Holdings, Inc. (NASDAQ:PYPL) has been given a target price of $109 along with an Outperform rating by James Fotheringham at BMO Capital on November 7. The analyst highlighted the Q3 2022 earnings beat due to lower costs and an increase in margin.

Wedgewood Partners shared its outlook on PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q3 2022 investor letter. Here’s what the firm said:

“PayPal Holdings, Inc. (NASDAQ:PYPL) contributed positively to performance as the Company reported accelerating revenue growth and more concrete measures to drive long-term profitability. Revenue growth accelerated throughout the quarter as the Company is taking share in e-commerce while lapping the headwinds of the eBay rolling off. While eBay’s revenues represented higher-margin revenues, the Company should be able to drive better transaction margins as total payment volume growth reaccelerates. Part and parcel of this growth comes from PayPal’s investments to drive higher penetration into its 429 million active accounts. PayPal’s active accounts have grown by +50% since the onset of the pandemic so it makes sense for management to focus on driving higher transactions per account, thus better to monetize this historical windfall of users. The Company also authorized a $15 billion share repurchase program, which represents over 10% of shares outstanding. This is a good use of capital relative to the Company’s historically depressed multiples.”

You can also take a peek at the 11 Best Aerospace Stocks To Buy and 13 Best Undervalued Stocks To Buy.

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Disclosure. None. 12 Best Get Rich Quick Stocks To Buy is originally published on Insider Monkey.