In this article, we discuss the 5 best cheap growth stocks according to hedge funds. If you want to read about some more stocks that hedge funds like, the risk/reward and methodology of this list, go directly to 10 Best Cheap Growth Stocks To Buy Now.
5. Autodesk, Inc. (NASDAQ:ADSK)
Number of hedge fund holders: 53
Autodesk, Inc. (NASDAQ:ADSK) is a 3D design, engineering, and entertainment software developer company.
Although it is already a huge company, the company has a next 5 year expected EPS growth rate of 23.35%. Analysts also have an average price target of $256.8 per share.
In September 2022 Autodesk, Inc. (NASDAQ:ADSK) formed a strategic partnership with Epic Games to accelerate innovative development.
Insider Monkey found 53 hedge funds having stakes in Autodesk, Inc. (NASDAQ:ADSK) at the end of Q2 2022. The total value of these stakes amounted to $95 million, up from $1.41 billion. As of September 16, Impax Asset Management is the largest shareholder in Autodesk, Inc. (NASDAQ:ADSK) and owns shares worth $221.23 million. The investment covers 1.07% of the fund’s 13F portfolio.
4. Charter Communications, Inc. (NASDAQ:CHTR)
Number of hedge fund holders: 68
Charter Communications, Inc. (NASDAQ:CHTR) is a broadband service and cable operating company in the US that operates in residential as well as commercial industries.
On July 29, the company released earnings for the fiscal second quarter of 2022. The company generated revenue of $13.60 billion. The normalized EPS reported was $8.80. The company has a next 5 year expected EPS growth rate of 29.27%.
On 28 September 2022, analyst Douglas Mitchelson of Credit Suisse maintained an Outperform rating on Charter Communications, Inc. (NASDAQ:CHTR) and lowered the firm’s price target from $676 to $551. Analysts have an average price target of $565.03 per share.
At the end of the second quarter of 2022, 68 hedge funds in the database of Insider Monkey held stakes worth $5.7 billion in Charter Communications, Inc. (NASDAQ:CHTR). Harris Associates is the largest shareholder in Charter Communications, Inc. (NASDAQ:CHTR) and owns shares worth $1.95 Billion. The investment covers 3.1% of the fund’s 13F portfolio.
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of hedge fund holders: 84
NVIDIA Corporation (NASDAQ:NVDA) offers solutions for graphics, computing, and networking. Given the demand for GPUs, the company’s earnings are expected to grow by an average annual rate of 23.4% over the next 5 years. In the Q2 2022, the company also reported $6.70 billion in revenue and reported normalized EPS of $0.51.
In September, analyst Ambrish Srivastava of BMO Capital decreased the firm’s price target from $230 to $210 while maintaining an Outperform rating on the stock. Analysts have an average price target of $196.99.
Ken Griffin’s Citadel Investment Group is NVIDIA Corporation (NASDAQ:NVDA)’s largest investor. It owns 17.17 million shares that are worth $2.68 billion. At the end of the second quarter of 2022, 84 hedge funds in the database of Insider Monkey held stakes worth $3.31 billion in NVIDIA Corporation (NASDAQ:NVDA).
2. Booking Holdings Inc. (NASDAQ:BKNG)
Number of hedge fund holders: 93
Booking Holdings Inc. (NASDAQ:BKNG) provides travel and restaurant online reservations and related services worldwide.
Analysts expect the company to grow earnings by an average annual rate of 48.81% over the next five years.
On September 12, 2022, Tom White, an analyst with DA Davidson, decreased the company’s price target for Booking Holdings from $2,300 to $2,150 while maintaining a Neutral rating on the stock. The average analyst price target for the stock is $2397.46.
As of Q2 2022, 93 of the 895 hedge funds tracked by Insider Monkey have positions in Booking Holdings Inc. (NASDAQ:BKNG), worth $5.5 billion. Its largest shareholder is Ken Griffin’s Citadel Investment Group with ownership of 761,500 shares valued at $1.3 billion.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of hedge fund holders: 252
Amazon.com, Inc. (NASDAQ:AMZN) is a multinational which focuses on retail sales of consumer products and subscriptions.
Even though it is one of the largest companies in the world already, the stock is expected to grow earnings per share by an average annual rate of 33.25% over the next 5 years. Analysts also have an average price target of $171.18 per share for the stock.
As of Q2 2022, 252 of the 895 hedge funds tracked by Insider Monkey have positions in Amazon.com, Inc. (NASDAQ:AMZN), worth $30.07 billion. Its largest shareholder is Ken Griffin’s Citadel Investment Group with shares worth $7.01 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Amazon.com, Inc. (NASDAQ:AMZN) was one of them. Here is what the fund said:
Amazon.com, Inc.(NASDAQ:AMZN) is the world’s largest retailer and cloud services provider. Shares of Amazon declined 35% in the quarter due to weaker-than-expected profits resulting from an overcapacity of resources coming out of COVID. We expect Amazon to grow into its retail capacity in the quarters to come, which would enable it to improve profitability accordingly. Amazon remains one of our largest holdings due to its durable competitive advantages with a leading position in multiple trillion-dollar markets with a long runway for growth
You can also take a look at Simon Sadler’s Segantii Capital is Bullish on These 10 Stocks and 10 Best Stocks to Buy Now According to Billionaire Andreas Halvorsen.
