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12 Best Young Stocks to Buy Now

In this article, we discuss 12 best young stocks to buy now. If you want to read about some more young stocks, go directly to 5 Best Young Stocks to Buy Now.

The year 2022 has not been kind to new companies that just debuted on the stock market. Data from professional services firm EY reveals that as of the end of September, there has been a 44% year-over-year decline in global IPOs with proceeds down by 57%. Paul Go, an EY Global IPO Leader, believes that IPO candidates looking to go public need to be well prepared when re-engaging the market as they face much lower valuations compared to the highs of 2021 because of rising rates and soaring inflation. 

However, Paul Go has also put investors on alert by remarking that if the market uncertainties and volatility subside to a certain extent, the launch of long-awaited blockbuster IPOs together with improved after-market returns may reverse the sentiment and attract more companies to follow. Some of the best IPO stocks to monitor in this regard include Coupang, Inc. (NYSE:CPNG), Qualtrics International Inc. (NASDAQ:XM), and Affirm Holdings, Inc. (NASDAQ:AFRM), among others discussed in detail below. 

Our Methodology

These companies that recently debuted on the stock market and have seen a flurry of hedge fund activity were selected for the list. In order to provide readers with some context for their investment choices, the business fundamentals and analyst ratings for the stocks are also discussed. A database of around 900 elite hedge funds tracked by Insider Monkey in the second quarter of 2022 was used to quantify the popularity of each stock in the hedge fund universe. 

Speedcurve Performance Analytics

Best Young Stocks to Buy Now

12. VIZIO Holding Corp. (NYSE:VZIO)

Number of Hedge Fund Holders: 8   

VIZIO Holding Corp. (NYSE:VZIO) provides smart televisions, sound bars, and accessories in the United States. It is one of the best IPO stocks to invest in. On September 7, a top executive at the firm revealed that one-third of customers who have smart televisions are still watching linear content through a traditional cable or satellite set top box. The data was collected through a survey conducted by the firm. 

On August 8, Bank of America analyst Wamsi Mohan maintained a Buy rating on VIZIO Holding Corp. (NYSE:VZIO) stock and lowered the price target to $15 from $17, noting that the firm expects lower active account growth in 2022 on lower TV sales. 

At the end of the second quarter of 2022, 8 hedge funds in the database of Insider Monkey held stakes worth $7.9 million in VIZIO Holding Corp. (NYSE:VZIO), compared to 17 in the preceding quarter worth $34.5 million. 

Just like Coupang, Inc. (NYSE:CPNG), Qualtrics International Inc. (NASDAQ:XM), and Affirm Holdings, Inc. (NASDAQ:AFRM), VIZIO Holding Corp. (NYSE:VZIO) is one of the best IPO stocks to buy now.

In its Q1 2022 investor letter, Argosy Investors, an asset management firm, highlighted a few stocks and VIZIO Holding Corp. (NYSE:VZIO) was one of them. Here is what the fund said:

“Reviewing Vizio (NYSE:VZIO), we purchased it quite recently and it has declined precipitously in our brief period of ownership. They have an explicit strategy to sacrifice gross margins from their TVs to further develop the audience for their smart TV offering, a competitor to Roku. I purchased the shares expecting the thesis to play out over a number of years, so I intend to monitor the company and its results as we move forward. Their first quarter results reflected strength in their Platform (Smart TV) segment, which will be their primary source of profit going forward. Further, the news that Netflix and other streaming companies are considering subscriptions that include advertising is positive news. In some ways, what is old is new again, as this development is somewhat of a return to the dual-revenue-stream model cable TV channels use. The shift towards more streaming programming including advertisements is a positive for Vizio, since they may be able to monetize the ads directly or indirectly. I’ll keep you posted on their progress.”

11. Compass, Inc. (NYSE:COMP)

Number of Hedge Fund Holders: 13      

Compass, Inc. (NYSE:COMP) provides real estate brokerage services in the United States. It is one of the top IPO stocks to invest in. On September 20, the shares of the firm continued to bounce back as the company executed another round of layoffs as part of its previously announced cost reduction efforts. Through these efforts, the company expects to achieve $320 million in target run rate savings. 

Among the hedge funds being tracked by Insider Monkey, Sydney, NSW-based investment firm Antipodes Partners is a leading shareholder in Compass, Inc. (NYSE:COMP), with 12.8 million shares worth more than $46 million.  

In its Q3 2021 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and Compass, Inc. (NYSE:COMP) was one of them. Here is what the fund said:

“We added several new GardenSM positions in Q3 including Compass, Inc. (NYSE:COMP). Compass is a real estate brokerage firm which provides its agents with a proprietary, end-to-end cloud-based platform. The company helps address the needs of buying and selling homes from client prospecting to closing, which includes customer relationship management, AI-driven prospecting, marketing (digital, social, email, video, print, signage, lead generation), market analysis and collaboration tools. The platform also uses machine learning, artificial intelligence and other advanced data analytics strategies to draw insights across the platform, allowing agents to be more efficient and informed in their selling efforts. We believe this technology advantage is key to the company continuing to disrupt and capture real estate commission market share. We have been impressed with the company’s ability to capture 4% market share since it was founded in 2012 (vs. Redfin, founded in 2002, holding a 1% market share). The company’s profit cycle can also be boosted by adding on additional services such as title insurance referral and escrow services, real estate marketing, home renovation referrals, home insurance and home warranty referrals—all of which we believe have a significantly larger addressable market than commissions (~7X).”

10. ThredUp Inc. (NASDAQ:TDUP)

Number of Hedge Fund Holders: 14

ThredUp Inc. (NASDAQ:TDUP) operates online resale platforms that allow consumers to buy and sell second-hand apparel, shoes, and accessories for women and kids. It is one of the premier IPO stocks to invest in. On October 4, Thredup announced that it had released an inaugural ESG impact report. This report outlines that the company’s business and brand aligned social and governance strategy.  

On August 15, Barclays analyst Trevor Young assumed coverage of ThredUp Inc.  (NASDAQ:TDUP) stock with an Overweight rating with a price target of $6, down from $9, noting that buyers, orders, and core revenues were all tracking ahead of firm expectations. 

Among the hedge funds being tracked by Insider Monkey, Seattle-based firm StackLine Partners is a leading shareholder in ThredUp Inc. (NASDAQ:TDUP), with 3.3 million shares worth more than $8.2 million.

9. Poshmark, Inc. (NASDAQ:POSH)

Number of Hedge Fund Holders: 15     

Poshmark, Inc. (NASDAQ:POSH) operates a social marketplace for new and secondhand style products in the United States, Canada, India, and Australia. It is one of the elite IPO stocks to invest in. On October 4, Naver, a South Korean internet conglomerate, said that it was exploring the purchase of the social marketplace for an enterprise value of $1.2 billion. Naver will provide technological and AI-based support to accelerate the global outreach of the marketplace if the purchase goes through. 

On August 15, Barclays analyst Trevor Young upgraded Poshmark, Inc. (NASDAQ:POSH) stock to Overweight from Equal Weight with a price target of $17, up from $13, noting that the company’s ad-targeting post IDFA and marketing continues to ramp as a percentage of revenue.

At the end of the second quarter of 2022, 15 hedge funds in the database of Insider Monkey held stakes worth $78 million in Poshmark, Inc. (NASDAQ:POSH), compared to 23 the preceding quarter worth $82.6 million.

In its Q2 2022 investor letter, MPE Capital, an asset management firm, highlighted a few stocks and Poshmark, Inc. (NASDAQ:POSH) was one of them. Here is what the fund said:

“Two (very) costly mistakes I’ve made over the last twelve months have been my investments in Altice USA and Poshmark, Inc. (NASDAQ:POSH). Both are down over 50% from my initial purchase price. I not only poorly appraised business quality; I also incorrectly appraised the intrinsic value of both of these companies. It should rarely end up the case that we pay over intrinsic value, at worst case we should never lose money on an investment.

One serious risk is the huge amount of leverage and the possibility of prolonged inflation leading to higher rates. They don’t have any major debt maturities coming due for a few years, but it’s possible that rates are much higher then and they have issues refinancing at favorable terms or at all. I’ve always detested companies with too much leverage not sure why I didn’t consider this enough upon my initial analysis. I guess I figured it’s a stable business that can handle some leverage. However, a business with a lot of leverage will always be at the mercy of capital markets, a fact I can’t ever feel very comfortable with.

In summary, I overstated steady state free cash flows, poorly appraised their value proposition versus peers, didn’t consider new entrants and technologies thoroughly enough, and I didn’t consider the risk of rising inflation and rates. I think once they fiberize their footprint and if they can bring their leverage down, and it’s clear that new entrants aren’t having much effect on their business, Altice might only then be a decent investment candidate.”

8. Oscar Health, Inc. (NYSE:OSCR)

Number of Hedge Fund Holders: 16  

Oscar Health, Inc. (NYSE:OSCR) provides health insurance products and services in the United States. It is one of the major IPO stocks to invest in. On August 30, the firm announced that Health First Shared Services, a Florida-based insurer, was ending a services agreement with the firm as early as January 2023. Under the 2021 agreement, the former was providing administrative functions and services as well as access to its technology for the latter. 

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Thrive Capital is a leading shareholder in Oscar Health, Inc. (NYSE:OSCR), with 37.6 million shares worth more than $159.9 million. 

In its Q2 2022 investor letter, Longleaf Partner Fund, an asset management firm, highlighted a few stocks and Oscar Health, Inc. (NYSE:OSCR) was one of them. Here is what the fund said:

“Oscar Health, Inc. (NYSE:OSCR) – US health insurance and software platform Oscar Health, a new position purchased in 4Q21, declined alongside most tech-related businesses in the quarter. The market is not recognizing the meaningful value of its managed care plan members and is instead focusing on near-term EBITDA declines driven by the company rapidly growing its health insurance and software businesses. Our management partners are aligned and have a track record of adding value for shareholders.”

7. DigitalOcean Holdings, Inc. (NYSE:DOCN)

Number of Hedge Fund Holders: 18     

DigitalOcean Holdings, Inc. (NYSE:DOCN) operates a cloud computing platform in North America, Europe, Asia, and internationally. On August 23, the company announced that it had entered into an agreement to acquire Cloudways, a managed hosting provider which emphasizes performance and simplicity as a service provider for Server Message Block Protocols. 

On August 9, KeyBanc analyst Michael Turits maintained an Overweight rating on DigitalOcean Holdings, Inc. (NYSE:DOCN) stock and raised the price target to $57 from $48, noting that the company reported solid Q2 results despite a difficult macro environment. 

Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Driehaus Capital is a leading shareholder in DigitalOcean Holdings, Inc. (NYSE:DOCN), with 779,219 shares worth more than $32 million. 

6. Coursera, Inc. (NYSE:COUR)

Number of Hedge Fund Holders: 20   

Coursera, Inc. (NYSE:COUR) operates an online educational content platform that connects learners, educators, organizations, and institutions. On September 29, the firm announced that the short video clips it offers would be expanding to 10 minutes for more than 200,000 videos and lessons. The lessons are designed in this way to help employees learn and achieve high demand skills. 

On July 28, DA Davidson analyst Peter Heckmann maintained a Buy rating on Coursera,  Inc. (NYSE:COUR) stock and lowered the price target to $16 from $29. 

At the end of the second quarter of 2022, 20 hedge funds in the database of Insider Monkey held stakes worth $60.3 million in Coursera, Inc. (NYSE:COUR), compared to 25 in the preceding quarter worth $76 million. 

Alongside Coupang, Inc. (NYSE:CPNG), Qualtrics International Inc. (NASDAQ:XM), and Affirm Holdings, Inc. (NASDAQ:AFRM), Coursera, Inc. (NYSE:COUR) is one of the best IPO stocks to buy now according to hedge funds.

In its Q3 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Coursera, Inc. (NYSE:COUR) was one of them. Here is what the fund said:

“We also added two positions in the IPO aftermarket, (one is) online education portal Coursera. Coursera, Inc. (NYSE:COUR), which makes academic courses from some of the world’s leading universities available through its platform and offers online degree programs, saw its shares trade lower following its March IPO but has seen significant uptake for its services since the onset of COVID.”

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Disclosure. None. 12 Best Young Stocks to Buy Now is originally published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

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As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

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AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

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Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

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This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…