5 Best Buy-the-Dip Growth Stocks to Buy Now

2. Ginkgo Bioworks Holdings, Inc. (NYSE:DNA)

Number of Hedge Fund Holders: 30

YTD Share Price Decline as of May 27: 63.64%

Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) is a Massachusetts-based company that specializes in cell programming, assisting with the development of novel therapeutics, food ingredients, and chemicals derived from petroleum. 

Despite the YTD decline in share prices of almost 64% as of May 27, Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) is a strong company to invest in, given its potential in the agriculture market amid the strength in commodities. This merits Ginkgo Bioworks Holdings, Inc. (NYSE:DNA)’s inclusion on our list of the best buy-the-dip growth stocks to buy now. 

On May 18, BofA analyst Derik de Bruin downgraded Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) to Underperform from Neutral with a price target of $3, down from $6, as he believes that the short-to-medium term upside appears limited. However, he remains positive on the long-term potential of the synthetic biology space and Ginkgo Bioworks Holdings, Inc. (NYSE:DNA)’s platform. He believes that the Q1 results outperformed consensus due to pandemic-related demand. He would need more visibility into Ginkgo Bioworks Holdings, Inc. (NYSE:DNA)’s future revenue streams and the market’s “appetite for longer duration growth stories to return” in order to revisit his outlook on the stock, the analyst added.

Among the hedge funds tracked by Insider Monkey, 30 funds were long Ginkgo Bioworks Holdings, Inc. (NYSE:DNA) at the end of Q1 2022, with collective stakes worth $990.3 million, compared to the same number of funds in the preceding quarter, with stakes in the company valued at $4.2 billion.