15 Best Innovative Stocks to Buy Now

Published on January 10, 2024 at 11:58 am by Ramish Cheema in Hedge Funds, News

In this piece, we will take a look at the 15 best innovative stocks to buy now. If you want to skip our introduction to what innovation is all about and why it’s the most rewarded trait on the stock market, then you can take a look at the 5 Best Innovative Stocks to Buy Now.

Innovation is at the heart of human progress and share price growth. Firms that find unique solutions to business problems or customer needs end up improving their operational efficiency and creating new revenue streams. This leads to more return per dollar for a shareholder than would have been possible through other investment vehicles, in a self sustaining system that requires adept managers to dot all the i’s.

When we look at some of the biggest companies in the world, such as Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), Meta Platforms, Inc. (NASDAQ:META), Tesla, Inc. (NASDAQ:TSLA), Intel Corporation (NASDAQ:INTC), and NVIDIA Corporation (NASDAQ:NVDA), Amazon.com, Inc. (NASDAQ:AMZN), and Alphabet Inc. (NASDAQ:GOOG), one fact is clear. All of these companies created new manufacturing technology, platforms, products, and tools that were not present at scale in their industries.

Apple’s example is worth a look here. Over the past decade, Apple’s revenue has grown by 124%, providing its dividend shareholders with excellent value for their capital that is re-invested in the company through retained earnings. Apple had bled $1.8 billion in net losses during its fiscal years ending in the September of 1996 and 1997. Now, it’s the world’s most profitable non-state-owned company that generated $96.9 billion in profit during its previous fiscal year. Apple’s success in the business world is attributed to its unique product design and the uncanny ability of its founder Steve Jobs to figure out key customer pain points before rival firms could catch on. The ability to design the right product and market it blends with the firm’s complex supply chain that covers 50 countries and saw more than eight hundred independent assessments in 2022.

However, while Apple’s shares and revenue are right at the top of the global food chain when it comes to innovation leading to triple digit growth, it is Tesla that is dominating the innovation space right now. The firm’s revenue has grown by 826% on an absolute basis since 2010, since the market that it caters to is simply too big for Tesla to ever capture. Millions of cars roam the roads every day, and while it’s easy to get an internal combustion (IC) car for low prices, a Tesla often costs tens of thousands of dollars. The lower cost market is a key Tesla objective, and its triple digit revenue growth is explained by the firm’s innovation in manufacturing and mass producing a fundamentally different product in the market.

While most companies on our list so far are mega-cap stocks, the one firm that isn’t is Intel. Intel is the world’s biggest processor company that designs and manufactures its own chips. This has been the case for quite some time now, and despite multiple slippages over the past decade, Intel still dominates simply due to its early found ability to double computing power every new processor generation. This ability enabled it to cement a market share right when computers were becoming powerful, and today, Intel is a corporate giant that controls the majority of x86 processor markets.

Looking at these companies, it’s clear that innovation is indispensable when aiming for success in the business world. Today, we’ll look at which innovative companies are on hedge funds’ radar and the notable picks are Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:META).

turtix / Shutterstock.com

Our Methodology

For our list of the best innovative stocks to buy, we ranked the top 30 holdings of the First Trust Innovation Leaders ETF (ILDR) by the number of hedge funds that had bought their shares as of Q3 2023 end. Out of these, the stocks with the highest number of hedge fund investors were selected.

For these stocks we have also mentioned hedge fund sentiment. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.

Best Innovative Stocks to Buy Now

15. Arista Networks, Inc. (NYSE:ANET)

Number of Hedge Fund Investors During Q3 2023: 59

Arista Networks, Inc. (NYSE:ANET) is a hardware company that sells equipment used in networking and connectivity systems. Despite less than two weeks having passed in 2024, its shares are in for some great news as not only did Morgan Stanley keep an Overweight rating on the 2nd, but Melius Research also upgraded the rating to Buy from Hold six days later.

As of Q3 2023 end, 59 out of the 910 hedge funds part of Insider Monkey’s database had bought and owned Arista Networks, Inc. (NYSE:ANET)’s shares. Steve Cohen’s Point72 Asset Management was the biggest shareholder among these as it owned $314 million worth of shares.

Along with Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Meta Platforms, Inc. (NASDAQ:META), Arista Networks, Inc. (NYSE:ANET) is a top innovative stock with strong hedge fund interest.

14. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)

Number of Hedge Fund Investors During Q3 2023: 69

CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a software and data center services provider that allows customers to secure their technical workloads, manage data, and maintain records. It’s one of the most strongly rated stocks on our list, and started off 2024 with an Outperform rating from Morgan Stanley. The shares are rated Strong Buy on average and the average share price target is $258.

During last year’s third quarter, 69 out of the 910 hedge funds profiled by Insider Monkey were the firm’s investors. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)’s largest hedge fund investor is Jim Simons’ Renaissance Technologies due to its $279 million stake.

13. Workday, Inc. (NASDAQ:WDAY)

Number of Hedge Fund Investors During Q3 2023: 77

Workday, Inc. (NASDAQ:WDAY) is a cloud computing that allows businesses to maintain and manage their payroll and other records. 2023 was a great year for the stock as the shares gained more than 70% on the market. The gain is also unsurprising since Workday, Inc. (NASDAQ:WDAY)’s third quarter earnings released in November 2023 saw the firm not only beat analyst revenue and EPS estimates but also upgrade its subscription revenue guidance for the full fiscal year.

Insider Monkey dug through 910 hedge fund holdings for 2023’s September quarter and found that 77 had held a stake in Workday, Inc. (NASDAQ:WDAY). Andreas Halvorsen’s Viking Global is the firm’s biggest shareholder among these as it owns $1.1 billion worth of shares.

12. Datadog, Inc. (NASDAQ:DDOG)

Number of Hedge Fund Investors During Q3 2023: 83

Datadog, Inc. (NASDAQ:DDOG) is a unique software company whose products enable users to operate, monitor, and maintain their cloud computing platforms. Its shares surged by 28% in November 2023 after a strong third quarter earnings report beat analyst estimates. Datadog, Inc. (NASDAQ:DDOG) posted 45 cents in EPS, nine cents higher than the analyst estimate.

For their third quarter of 2023 shareholdings, 83 out of the 910 hedge funds covered by Insider Monkey’s research were the firm’s investors. Datadog, Inc. (NASDAQ:DDOG)’s largest stakeholder out of these is Paul Marshall and Ian Wace’s Marshall Wace LLP due to its $282 million investment.

11. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Investors During Q3 2023: 87

Broadcom Inc. (NASDAQ:AVGO) is a specialized semiconductor designer that focuses on developing signals management and associated products. Its highly hyped VMware acquisition, which closed in November 2023, might have come at just the right time due to VMware’s ability to consolidate multiple cloud platforms under a single roof that can create new opportunities in the A.I. era.

Insider Monkey scoured through 910 hedge fund portfolios for last year’s third quarter and found that 87 had held a stake in Broadcom Inc. (NASDAQ:AVGO). Ken Fisher’s Fisher Asset Management was the biggest investor courtesy of its $1.7 billion stake.

10. Oracle Corporation (NYSE:ORCL)

Number of Hedge Fund Investors During Q3 2023: 88

Oracle Corporation (NYSE:ORCL) is a major global enterprise resource planning software provider. While its latest quarterly results were disappointing on the cloud computing front, Oracle Corporation (NYSE:ORCL) started January 2024 on a strong note as it expanded its database collaboration with Microsoft to bring Microsoft Azure customers to its products as well.

During 2023’s Q3, 88 out of the 910 hedge funds covered by Insider Monkey’s research had invested in the firm. Oracle Corporation (NYSE:ORCL)’s largest hedge fund shareholder is Ken Fisher’s Fisher Asset Management since it owns 18.7 million shares that are worth $1.9 billion.

9. ServiceNow, Inc. (NYSE:NOW)

Number of Hedge Fund Investors During Q3 2023: 99

ServiceNow, Inc. (NYSE:NOW) is a diversified American software company that enables businesses and other organizations to manage their daily work, information technology operations, and other areas. The shares are rated Strong Buy on average and analysts have set an average share price target of $701.

By the end of last year’s third quarter, 99 out of the 910 hedge funds surveyed by Insider Monkey were ServiceNow, Inc. (NYSE:NOW)’s investors. Rajiv Jain’s GQG Partners was the biggest investor due to its $831 million investment.

8. Thermo Fisher Scientific Inc. (NYSE:TMO)

Number of Hedge Fund Investors During Q3 2023: 109

Thermo Fisher Scientific Inc. (NYSE:TMO) is an American scientific and medical research laboratory equipment and associated products provider. 2024 started on a disappointing note for the firm’s investors as Bernstein downgraded the shares to Market Perform from Outperform. Year to date though the stock is up by a modest 2%.

As September 2023 ended, 109 out of the 910 hedge funds tracked by Insider Monkey’s research were the firm’s shareholders. Thermo Fisher Scientific Inc. (NYSE:TMO)’s largest investor is Chris Hohn’s TCI Fund Management courtesy of its $1.6 billion stake.

7. Uber Technologies, Inc. (NYSE:UBER)

Number of Hedge Fund Investors During Q3 2023: 146

Uber Technologies, Inc. (NYSE:UBER) is a well-known ride sharing services provider. 2024 is proving to be a very important year for the company after the Biden administration’s latest rules for gig workers. These rules change the criteria that companies can use to classify workers as contractors, and they could require large players such as Uber Technologies, Inc. (NYSE:UBER) to shake up their way of doing business.

Insider Monkey scoured through 910 hedge fund holdings for their third quarter of 2023 shareholdings and found 146 Uber Technologies, Inc. (NYSE:UBER) investors. Brad Gerstner’s Altimeter Capital Management was the biggest shareholder as it held a $613 million stake.

6. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Investors During Q3 2023: 163

Alphabet Inc. (NASDAQ:GOOG) is one of the biggest technology companies in the world. After exiting 2023 with a multitude of legal woes involving its application store and search engine products, Alphabet Inc. (NASDAQ:GOOG) is starting 2024 by facing a jury in Boston to decide whether it had violated a computer scientist’s patents in running A.I. workloads.

By the end of Q3 2023, 163 out of the 910 hedge funds covered by Insider Monkey’s research had invested in the firm. Alphabet Inc. (NASDAQ:GOOG)’s largest investor is Ken Fisher’s Fisher Asset Management as it holds $5.7 billion worth of shares.

Alphabet Inc. (NASDAQ:GOOG), Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:META) are some best innovative stocks to buy.

Click here to continue reading and check out 5 Best Innovative Stocks to Buy Now.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Published on May 1, 2024 at by Inan Dogan, PhD

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!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

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.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

But with so many choices, how do you find the hidden gem – the company poised for explosive growth?

That’s where our expertise comes in.

We’ve got the answer, but there’s a twist…

Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.

That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!

Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

It’s like having a race car on a go-kart track.

They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 75%.

For a ridiculously low price of just $24, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

Here’s why this is a deal you can’t afford to pass up:

The Name of the Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.
Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.
Lifetime Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund ANYTIME, no questions asked.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

Head over to our website and subscribe to our Premium Readership Newsletter for just $24.
Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.
Sit back, relax, and know that you’re backed by our ironclad lifetime money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Subscribe Now!

A New Dawn is Coming to U.S. Stocks

Published on May 2, 2024 at by Insider Monkey Staff

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…

Insider Monkey Ads

Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Log In

Sign Up