In this article, we will discuss the 12 bestup-and–coming stocks to buy now.
2022 has been the worst year for growth stocks, and stocks in general, since 2008. The runaway inflation we had throughout the year globally, and all of the world’s central banks making efforts to bring it down, resulted in alarmingly high interest rates. The projections for interest rates in the U.S. currently sit at above 5%, and this is bad news for growth.
What’s Ahead for Growth?
Growth is primarily led by technology. On December 29, Senior Managing Director & Head of Internet Research at Evercore ISI, Mark Mahaney, appeared in an interview on Yahoo Finance Live where he discussed the current situation of tech stocks and how he sees them performing moving forward. Mark Mahaney noted that 2022 has been one of the worst performing years for tech stocks due to the obvious factors including “aggressively rising interest rates, inflation, softening economy, foreign exchange working against major multinationals”, and “basically a really nasty cocktail of factors that came together to undermine tech growth stocks” in 2022. Here are some comments from Mark Mahaney:
“I think some of those factors have changed, and certainly it’s reflective in I think where estimates are and where multiples are. That’s why we’re more constructive but we’re tactically constructive, I don’t want to be too nuanced about it, but we need to be because softening demand trends are gonna mean decelerating revenue growth and pressure on margins for the next couple of quarters. So that makes it very hard for stocks to outperform, you have to be very selective to find winners in that.”
Mark Mahaney noted that interest rate projections point to a range between 4% and 5% and that is “a massive move.” However, he thinks that “the interest rate shock is gonna be as great as what we had this last year”. So, “if rates keep rising and the Fed remains hawkish, it’s gonna be very hard for growth tech stocks to materially outperform.”
However, Mark Mahaney does not think that growth stocks will “underperform in the way they did this year (in ’22)”.
We compiled a list of the best up–and–coming stocks to buy now. These stocks are of companies that, even in a high interest rate environment, managed to more than keep their head above the water and outperformed throughout 2022. We focused on each company’s revenue growth throughout 2022. Companies with high revenue growth are often seen as disruptive forces in their respective industries. These companies often have innovative products, services, or business models that are gaining traction in the market. As a result, they can be attractive investments to those looking for potentially high returns over time, and are therefore exciting ‘up and coming’ stocks. Some of the best up–and–coming stocks to buy now include Bill.com Holdings, Inc. (NYSE:BILL), Datadog, Inc. (NASDAQ:DDOG), and CrowdStrike Holdings, Inc. (NASDAQ:CRWD).

Source:unsplash
Our Methodology
To determine the best up–and–coming stocks to buy now, we screened for companies that grew their revenue by at least 45% throughout 2022. We went through each company’s quarterly earnings reports and narrowed down our selection to stocks that have delivered more than 45% year-over-year revenue growth in Q1, Q2, and Q3.
Along with each stock, we have mentioned revenue growth rates for Q1, Q2, and Q3, and also, the hedge fund sentiment and analyst ratings for each of our picks. We used the hedge fund sentiment to rank these stocks since we believe it is a critical indicator of a company’s near-term performance. We have ranked these stocks according to their popularity among elite hedge funds, from least popular to most popular.
12. TD SYNNEX Corporation (NYSE:SNX)
Revenue Growth in Q1 2022: 213.22%
Revenue Growth in Q2 2022: 160.72%
Revenue Growth in Q3 2022: 194.91%
Number of Hedge Fund Holders: 23
TD SYNNEX Corporation (NYSE:SNX) is one of the best up–and–coming stocks to buy now. The California-based provider of IT distribution, supply chain services, and technology solutions, has quickly become one of the most notable players in the space, growing its revenue by roughly 200% in its fiscal third quarter of 2022. The company has been consistent with growing its revenue and reported year-over-year revenue growth of 213.22% in FQ1 2022, and 160.72% in FQ2 2022.
In addition to growing its revenue, TD SYNNEX Corporation (NYSE:SNX) is committed to returning cash to shareholders. As of January 9, the stock is offering a forward dividend yield of 1.25% and is trading at a PE multiple of 18x, not a bad deal for a high growth company.
Last October, Raymond James analyst Adam Tindle maintained a Strong Buy rating and his $140 price target on TD SYNNEX Corporation (NYSE:SNX).
At the end of Q3 2022, 23 hedge funds were invested in TD SYNNEX Corporation (NYSE:SNX) and disclosed positions worth $434.65 million. Of those, Abrams Bison Investments was the most prominent investor in the company and held a position worth $176 million.
11. SentinelOne, Inc. (NYSE:S)
Revenue Growth in Q1 2022: 109.30%
Revenue Growth in Q2 2022: 124.05%
Revenue Growth in Q3 2022: 105.87%
Number of Hedge Fund Holders: 30
SentinelOne, Inc. (NYSE:S) is a leading global cybersecurity technology company that provides endpoint protection solutions to protect organizations from cyber threats. Cybersecurity is a booming industry and SentinelOne, Inc. (NYSE:S) is placed at the center of it. The company consistently reported year-over-year revenue growth in 2022 and grew its revenue by over 100% on average.
On December 6, SentinelOne, Inc. (NYSE:S) posted earnings for the third quarter of fiscal 2023, in which the company beat EPS by $0.06. The company reported a revenue of $115.32 million, up 105.87% year over year, and outperformed expectations by $4.32 million.
On December 15, Wedbush analyst Taz Koujalgi started coverage of SentinelOne, Inc. (NYSE:S) with an Outperform rating and a $19 price target.
At the close of the third quarter of 2022, 30 hedge funds were long SentinelOne, Inc. (NYSE:S) and held stakes worth $1.33 billion in the company. Of those, Dan Loeb’s Third Point was the top investor in the company and disclosed a position worth $485.64 million.
10. monday.com Ltd. (NASDAQ:MNDY)
Revenue Growth in Q1 2022: 84.00%
Revenue Growth in Q2 2022: 75.20%
Revenue Growth in Q3 2022: 64.90%
Number of Hedge Fund Holders: 31
monday.com Ltd (NASDAQ:MNDY) is a becoming a global leader in cloud-based, CRM, and project management software applications. At the close of Q3 2022, monday.com Ltd (NASDAQ:MNDY) was spotted on 31 investors’ portfolios that held positions worth $391.76 million in the company.
On November 14, monday.com Ltd (NASDAQ:MNDY) posted strong earnings for the fiscal third quarter of 2022. The company reported an EPS of $0.05 and beat estimates by $0.59. The company’s revenue for the quarter amounted to $136.89 million, up 64.90% year over year, and outperformed market consensus by $6.45 million. On average, monday.com Ltd (NASDAQ:MNDY) has grown its revenue by over 70% year over year in 2022 and is, therefore, one of the best up–and–coming stocks to buy now.
This January, Piper Sandler analyst Brent Bracelin revised his price target on monday.com Ltd. (NASDAQ:MNDY) to $130 from $138 and reiterated an Overweight rating on the shares.
As of September 30, Coatue Management is the top shareholder in monday.com Ltd. (NASDAQ:MNDY) and has a position worth $53 million in the company.
9. Monolithic Power Systems, Inc. (NASDAQ:MPWR)
Revenue Growth in Q1 2022: 48.44%
Revenue Growth in Q2 2022: 57.17%
Revenue Growth in Q3 2022: 53.13%
Number of Hedge Fund Holders: 43
Monolithic Power Systems, Inc. (NASDAQ:MPWR) is a leading semiconductor company that develops and markets semiconductor-based power electronics solutions for the computing and storage, automotive, industrial, communications, and consumer markets. This January, Needham analyst N. Quinn Bolton maintained his $450 price target and a Buy rating on Monolithic Power Systems, Inc. (NASDAQ:MPWR).
Last October, Monolithic Power Systems, Inc. (NASDAQ:MPWR) posted earnings for the fiscal third quarter of 2022, in which the company reported a revenue of $495.42 million, up 53.13% year over year. The company reported revenue growth of 48.44% in Q1 2022 and 57.17% in Q2 2022. Monolithic Power Systems, Inc. (NASDAQ:MPWR) is one of the best up–and–coming stocks to buy now.
On December 12, Monolithic Power Systems, Inc. (NASDAQ:MPWR) announced that it has entered into a foundry agreement with Vanguard International Semiconductor Corporation to produce power semiconductors.
At the end of the third quarter of 2022, 43 hedge funds held stakes in Monolithic Power Systems, Inc. (NASDAQ:MPWR). The total value of these stakes amounted to $1.34 billion. As of September 30, GQG Partners is the top shareholder in Monolithic Power Systems, Inc. (NASDAQ:MPWR) and disclosed a position worth $198.4 million.
Here is what Carillon Tower Advisers had to say about Monolithic Power Systems, Inc. (NASDAQ:MPWR) in its third-quarter 2022 investor letter:
“Fabless semiconductor company Monolithic Power Systems, Inc. (NASDAQ:MPWR) brought up the rear as angst about the semiconductor cycle, Fed interest rate hikes, and tensions in Asia surrounding Taiwan hurt sentiment. The attendant worries overwhelmed the positive sentiment generated after the company reported a strong quarter.”
8. SolarEdge Technologies, Inc. (NASDAQ:SEDG)
Revenue Growth in Q1 2022: 61.55%
Revenue Growth in Q2 2022: 51.60%
Revenue Growth in Q3 2022: 58.95%
Number of Hedge Fund Holders: 44
SolarEdge Technologies, Inc. (NASDAQ:SEDG) is a global leader in smart energy solutions, providing a comprehensive portfolio of innovative products and solutions that enable the maximum utilization of solar energy. The company is a leading developer DC optimized inverter systems for solar photovoltaic installations. SolarEdge Technologies, Inc. (NASDAQ:SEDG) has been growing its revenue consistently and is one of the best up–and–coming stocks to buy now. The company reportedly grew its revenue by 61.55%, 51.60%, and 58.95%, year over year, in Q1, Q2, and Q3, respectively.
On December 22, Piper Sandler analyst Kashy Harrison raised her price target on SolarEdge Technologies, Inc. (NASDAQ:SEDG) to $390 from $325 and remained Overweight rating on the shares.
At the close of the third quarter of 2022, 44 hedge funds were eager on SolarEdge Technologies, Inc. (NASDAQ:SEDG) and disclosed positions worth $673.7 million. Of those, Impax Asset Management was the largest investor in the company and held a position worth $126.18 million.
7. Zscaler, Inc. (NASDAQ:ZS)
Revenue Growth in Q1 2022: 62.59%
Revenue Growth in Q2 2022: 61.39%
Revenue Growth in Q3 2022: 54.24%
Number of Hedge Fund Holders: 51
Zscaler, Inc. (NASDAQ:ZS) is a leader in cloud-based security, offering a comprehensive suite of solutions including secure web gateway, cloud access security brokers, and firewall-as-a-service. The company’s technology is used by large organizations to protect their networks from cyber-attacks. Zscaler, Inc. (NASDAQ:ZS) is well-positioned to benefit from the growing demand for cloud-based security solutions and is a good candidate for investors in search of up–and–coming stocks.
On December 1, Zscaler, Inc. (NASDAQ:ZS) posted strong earnings for the fiscal first quarter of 2023. The company reported an EPS of $0.29 and outperformed EPS expectations by $0.03. The company’s revenue for the quarter amounted to $355.55 million, up 54.24% year over year, and beat revenue estimates by $14.78 million. The company also reported revenue growth of 62.59% in Q1 2022, and 61.39% in Q2 2022.
This January, Needham analyst Alex Henderson maintained a Strong Buy rating and his $210 price target on Zscaler, Inc. (NASDAQ:ZS).
At the close of Q3 2022, 51 hedge funds were bullish on Zscaler, Inc. (NASDAQ:ZS) and held positions worth $1.33 billion in the company. As of September 30, D E Shaw is the top investor in the company and has a stake worth $189.9 million.
Here is what Artisan Partners had to say about Zscaler, Inc. (NASDAQ:ZS) in its third-quarter 2022 investor letter:
“Our notable adds in the quarter included Zscaler, Inc. (NASDAQ:ZS) , Etsy and BioNTech. Zscaler provides cloud-based Internet security solutions. The company recently delivered 61% revenue growth and expects to grow nearly 40% in 2023 (ahead of expectations). Despite solid fundamental momentum, shares have underperformed this year as investors have grown concerned about slowing demand for enterprise software as the broader global economy slows. We believe the dual trends of rising security vulnerability and increased enterprise digitization will lead to sustained demand, even in a recession. Cybersecurity remains a top concern for businesses and governments alike as cyberattacks can have devastating financial and reputational consequences. From 2018 to 2020, losses from cybercrimes grew 67% to $1 trillion, and some estimate it could reach $10 trillion by 2025. Meanwhile, managing the security needs of legacy on-premise applications, a growing number of cloud-based applications (Office 365, Salesforce, etc.) and a more remote workforce (versus pre-pandemic) make operating IT infrastructures increasingly complex. Zscaler’s scalable, cloud-based security platform is a more secure and efficient way to connect users and applications, which eliminates the need for several layers of security (firewalls, VPNs, etc.) developed and built over the last couple of decades. For these reasons and with shares trading at an attractive discount to our PMV estimate, we added to our position.”
In addition to Zscaler, Inc. (NASDAQ:ZS), other companies that have delivered top-line revenue growth in 2022 include Bill.com Holdings, Inc. (NYSE:BILL), Datadog, Inc. (NASDAQ:DDOG), and CrowdStrike Holdings, Inc. (NASDAQ:CRWD).
6. Enphase Energy, Inc. (NASDAQ:ENPH)
Revenue Growth in Q1 2022: 46.24%
Revenue Growth in Q2 2022: 67.75%
Revenue Growth in Q3 2022: 80.56%
Number of Hedge Fund Holders: 59
Enphase Energy, Inc. (NASDAQ:ENPH) is a leading provider of solar energy solutions, offering innovative microinverter technology and energy storage systems that enable the most efficient and economical solar power systems available on the market. The company has a strong competitive advantage with its patented technology that enables more efficient energy conversion from the solar panels to the grid. With the increasing demand for renewable energy and the company’s strong market position, Enphase Energy, Inc. (NASDAQ:ENPH) is well-positioned to capitalize on the growth of the solar energy market and is one of the best up–and–coming stocks to buy now. The company has reportedly grown its revenue by over 60% on average through the first three quarters of 2022.
On December 23, Daiwa analyst Jonathan Kees took coverage of Enphase Energy, Inc. (NASDAQ:ENPH) with an Outperform rating and a $335 price target.
At the end of Q3 2022, 59 hedge funds held stakes in Enphase Energy, Inc. (NASDAQ:ENPH). The total value of these stakes amounted to $2.20 billion. As of September 30, Two Sigma Advisors is the largest shareholder in Enphase Energy, Inc. (NASDAQ:ENPH) and has a position worth $393.7 million.
Here is what ClearBridge Investments had to say about Enphase Energy, Inc. (NASDAQ:ENPH) in its third-quarter 2022 investor letter:
“In IT, Enphase Energy, Inc. (NASDAQ:ENPH) delivered a strong quarter driven by secular growth in global rooftop solar, increased penetration into Europe, where demand accelerated, and a continued ramp up in battery storage sales. Also with a strong presence in the U.S., Enphase Energy designs and manufactures microinverters for residential and small commercial solar PV systems and has made strides in evolving from a solar inverter maker into a “home energy management” company that can act as the brains for the home’s energy system, including microinverters for solar, as well as storage and energy management software.”
5. Bill.com Holdings, Inc. (NYSE:BILL)
Revenue Growth in Q1 2022: 179.41%
Revenue Growth in Q2 2022: 155.80%
Revenue Growth in Q3 2022: 97.52%
Number of Hedge Fund Holders: 70
Bill.com Holdings, Inc. (NYSE:BILL) is a leading global provider of cloud-based financial management software for SMEs. With a strong customer base and long-term growth prospects, Bill.com Holdings, Inc. (NYSE:BILL) is an attractive investment for those looking for a disruptive technology play and is one of the best-up and-coming stocks to buy now. The company has grown its revenue by over 150% on average in the first three quarters of 2022.
On January 9, Wells Fargo analyst Jeff Cantwell revised his price target on Bill.com Holdings, Inc. (NYSE:BILL) to $180 from $195 and reiterated an Overweight rating on the shares.
At the end of Q3 2022, 70 hedge funds were long Bill.com Holdings, Inc. (NYSE:BILL) and held stakes worth $1.66 billion in the company. Of those, Abdiel Capital Advisors was the top investor in the company and held stakes worth $267.5 million.
Here is what TimesSquare Capital Management had to say about Bill.com Holdings, Inc. (NYSE:BILL) in its third-quarter 2022 investor letter:
“Bill.com Holdings, Inc. (NYSE:BILL) offers cloud-based software that simplifies, digitizes, and automates back-office functions for small and mid-sized businesses. The company has indicated that customer spending softened a bit in recent months and that has been factored into forward guidance. We decided to sell out of the position, which had declined by -20% while it was held in the quarter.”
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4. Snowflake Inc. (NYSE:SNOW)
Revenue Growth in Q1 2022: 84.51%
Revenue Growth in Q2 2022: 82.68%
Revenue Growth in Q3 2022: 66.55%
Number of Hedge Fund Holders: 73
Snowflake Inc. (NYSE:SNOW) is a leading cloud data platform provider that is revolutionizing the way organizations store, share, and analyze data. The company has experienced rapid growth since its IPO in 2020, driven by a strong customer base that includes many Fortune 500 companies. Moreover, the company’s financials are robust. Snowflake Inc. (NYSE:SNOW) has seen strong growth in revenue and profits. Snowflake Inc. (NYSE:SNOW) grew its revenue by over 80% in both Q1 and Q2 of 2022, and by over 65% in Q3 2022.
On January 9, Piper Sandler analyst Brent Bracelin updated his price target on Snowflake Inc. (NYSE:SNOW) to $194 from $200 and maintained an Overweight rating on the shares.
At the close of Q3 2022, 73 hedge funds were bullish on Snowflake Inc. (NYSE:SNOW) and disclosed positions worth $6.01 billion in the company. As of September 30, Altimeter Capital Management is the most prominent investor in the company and has a stake worth $2.88 billion.
Here is what Baron Funds had to say about Snowflake Inc. (NYSE:SNOW) in its third-quarter 2022 investor letter:
“Snowflake Inc. (NYSE:SNOW) provides a cloud platform for large-scale data analytics. Snowflake’s shares were up 22%, reacting positively to second quarter results that beat market forecasts with revenue growth of 83% year-over year and adjusted free-cash-flow margins of 12%. Record new customer additions and world-class dollar net retention of over 170% implied resiliency in demand despite increasing macro uncertainties. We remain shareholders and believe that Snowflake will be able to benefit from long-term growth with favorable unit economics, addressing one of the largest opportunities in technology. Snowflake’s culture of innovation (such as its expansion into cloud application development and data sharing), go-to-market initiatives, and an ongoing secular shift to the cloud in its end markets should help, in our view, sustain the company’s competitive moats over the long term.”
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3. Datadog, Inc. (NASDAQ:DDOG)
Revenue Growth in Q1 2022: 82.84%
Revenue Growth in Q2 2022: 73.90%
Revenue Growth in Q3 2022: 61.39%
Number of Hedge Fund Holders: 74
Datadog, Inc. (NASDAQ:DDOG) operates a cloud-based monitoring and analytics platform that helps organizations better manage their infrastructure, applications, and services. The company has recently seen rapid expansion, making it a compelling investment opportunity for investors and is placed third among the best up-and-coming stocks to buy now.
Last November, Datadog, Inc. (NASDAQ:DDOG) posted earnings for the fiscal third quarter of 2022, in which it reported a revenue of $436.53 million, up 61.39% year over year. The company also posted revenue growth in Q1 and Q2, growing its revenue by 82.84% and 73.90% respectively.
This January, Oppenheimer analyst Ittai Kidron maintained his $105 price target and an Outperform rating on Datadog, Inc. (NASDAQ:DDOG).
At the close of Q3 2022, Datadog, Inc. (NASDAQ:DDOG) was a part of 74 investors’ portfolios that held collective stakes worth $2.56 billion in the company. Of those, Tiger Global Management LLC was the top investor in the company and held a position worth $512.7 million.
Here is what Baron Funds had to say about Datadog, Inc. (NASDAQ:DDOG) in its third-quarter 2022 investor letter:
“Similarly, we continued scaling up our investment in Datadog, Inc. (NASDAQ:DDOG), recognizing significant opportunities for the long term, while the majority of investors remain preoccupied with the here and now. While the company may see some short-term headwinds to growth (the company reported seeing some impact to its volume-driven logs and Application Performance Management modules), long-term prospects remain bright, in our view. Datadog reported a best-in-class gross retention rate in the “mid-to-high 90s%,” 74% year-over-year revenue growth, and 21% adjusted operating margins.”
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2. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Revenue Growth in Q1 2022: 61.08%
Revenue Growth in Q2 2022: 58.47%
Revenue Growth in Q3 2022: 52.84%
Number of Hedge Fund Holders: 85
Another up-and-coming stock to buy now is cybersecurity leader CrowdStrike Holdings, Inc. (NASDAQ:CRWD). The company is a leading provider of cloud-delivered endpoint and workload protection solutions. CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is well-positioned to capitalize on the growth opportunities in the cyber security space. The company has delivered top-line revenue growth in 2022 and has reportedly grown its quarterly revenue by over 50% year over year, on average, in the first three quarters of 2022.
On November 29, CrowdStrike Holdings, Inc. (NASDAQ:CRWD) posted market-beating earnings for the fiscal third quarter of 2023. The company reported an EPS of $0.40 and outperformed EPS estimates by $0.08. The company’s revenue for the quarter amounted to $580.88 million, up 52.84% year over year, and beat Wall Street consensus by $5.82 million.
This January, Piper Sandler analyst Rob Owens revised his price target on CrowdStrike Holdings, Inc. (NASDAQ:CRWD) to $170 from $175 and remained Overweight on the shares.
At the end of Q3 2022, CrowdStrike Holdings, Inc. (NASDAQ:CRWD) was spotted on 85 investors’ portfolios that disclosed positions worth $2.97 billion in the company. Of those, Matrix Capital Management was the most prominent investor and held a position worth $494.43 million.
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1. Uber Technologies, Inc. (NYSE:UBER)
Revenue Growth in Q1 2022: 136.10%
Revenue Growth in Q2 2022: 105.47%
Revenue Growth in Q3 2022: 72.20%
Number of Hedge Fund Holders: 142
Ride-hailing innovator Uber Technologies, Inc. (NYSE:UBER)’s platform is based on cutting-edge technology, including artificial intelligence and machine learning, which help the company to optimize its services, improve efficiency, and reduce costs. Uber Technologies, Inc. (NYSE:UBER) is also investing heavily in autonomous vehicle technology, which could be a major driver of growth in the coming years.
Last November, Uber Technologies, Inc. (NYSE:UBER) posted strong revenue growth when it reported earnings for the fiscal third quarter of 2022. The company generated a revenue of $8.34 billion, up 72.20% year over year. Uber Technologies, Inc. (NYSE:UBER) has managed to deliver remarkable revenue growth throughout 2022, posting revenue gains of 136.10% in Q1 2022 and 105.47% in Q2 2022.
At the end of Q3 2022, 142 hedge funds were long Uber Technologies, Inc. (NYSE:UBER) and disclosed positions worth $6.29 billion in the company. As of September 30, Ken Fisher’s Fisher Asset Management is the dominant shareholder in the company and has a position worth $510.4 million.
Here is what Artisan Partners had to say about Uber Technologies, Inc. (NYSE:UBER) in its third-quarter 2022 investor letter:
“During the quarter, we began new GardenSM campaigns in Uber Technologies, Inc. (NYSE:UBER) and Shopify. In July, we initiated our position in Uber, a leader in global ride-hailing and online food delivery. We believe the company is wellpositioned to benefit from strong secular tailwinds in both of its core businesses. Earlier this year, management outlined a plan at its investor day to achieve $4 billion of free cash flow by 2024, an encouraging commitment given investors have maligned the company for years of being unprofitable. We witnessed solid progress toward achieving this goal in the company’s most recent earnings results, where it beat expectations for the quarter on both fronts and delivered positive FCF for the first time. The company also indicated it isn’t seeing any evidence of slowing demand. We recognize the execution risk associated with Uber achieving its long-term targets, and the path likely won’t be linear, which is why we are keeping our position size modest until we see signs of continued operational momentum in the coming quarters.”
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