In this article, we will take a look at the 5 best fast growth stocks to buy now. To see more such companies, go directly to 12 Best Fast Growth Stocks to Buy Now.
5. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 66
Cybersecurity company CrowdStrike Holdings, Inc. (NASDAQ:CRWD) ranks 5th in our list of the best fast growth stocks to buy. CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in March posted its Q4 results. Revenue in the quarter increased by about 48% year over year to reach $637.4 million, beating estimates by $10.56 million. Adjusted EPS in the quarter came in at $0.47, beating estimates by $0.04. Annual recurring revenue increased by 48% year over year.
A total of 66 hedge funds tracked by Insider Monkey have stakes in CrowdStrike Holdings, Inc. (NASDAQ:CRWD) as of the end of the fourth quarter of 2022, a significant decline from 85 hedge funds recorded at the end of the previous quarter.
Artisan Developing World Fund made the following comment about CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in its Q1 2023 investor letter:
“Top contributors to performance for the quarter included graphics semiconductor company Nvidia, Southeast Asian e-commerce platform Sea, Latin American marketplace MercadoLibre, online travel marketplace Airbnb, and endpoint security company CrowdStrike Holdings, Inc. (NASDAQ:CRWD). CrowdStrike rebounded as its financial results eased demand-related concerns in its core endpoint business, while adoption in platform adjacencies continued to rise.”
4. MercadoLibre, Inc. (NASDAQ:MELI)
Number of Hedge Fund Holders: 75
Online marketplace company MercadoLibre, Inc. (NASDAQ:MELI) ranks 4th in our list of the best fast growth stocks to buy now. During the fourth quarter MercadoLibre, Inc. (NASDAQ:MELI)’s revenue increased by 41% year over year to reach $3 billion, beating estimates by $40 million. GAAP EPS in the quarter came in at $3.25, beating estimates by $0.93.
Insider Monkey’s database of 943 hedge funds shows that 75 hedge funds had stakes in MercadoLibre, Inc. (NASDAQ:MELI) as of the end of the fourth quarter of 2022. The total worth of these stakes was $3.2 billion.
Lakehouse Capital made the following comment about MercadoLibre, Inc. (NASDAQ:MELI) in its February 2023 investor letter:
“Despite ongoing macro concerns, Buenos Aires-based e-commerce leader MercadoLibre, Inc. (NASDAQ:MELI) delivered a strong result to finish off the year with an impressive balance of growth and profitability. The company reported record levels of operating income and margin expansion, all whilst maintaining 40%-plus top-line growth. Its marketplace business experienced double digit growth across all key markets – namely Brazil, Argentina and Mexico – and generated $9.6 billion in gross merchandise value, up 35% year-on-year. The platform’s key metrics remained healthy with market share gains across primary markets and unique buyers increasing 13% to its highest level ever of 46 million.
The company’s fintech business also continued to grow at a rapid clip, with total payment volume growing 45% year-on-year to US$36 billion. Unique active fintech users were up 27% to 44 million, driven by higher engagement across all regions, particularly Argentina and Mexico. Importantly, the company has invested heavily in their fintech solution, MercadoPago, over the last couple of years to build out the product stack, and in our view, is now well-positioned to become a leading financial services provider in the region. Overall, we remain strong supporters of the business and still believe it’s early days as the combination of relatively nascent penetration of ecommerce and a large underbanked population in Latin America provide an excellent foundation for future growth.”
3. Booking Holdings Inc. (NASDAQ:BKNG)
Number of Hedge Fund Holders: 83
In February Booking Holdings Inc. (NASDAQ:BKNG) posted its fourth quarter results, which showed that revenue in the quarter increased by about 35.9% year over year to reach $4.05 billion, beating estimates by $150 million. Adjusted EPS in the quarter came in at $24.74, beating estimates by $2.66.
83 hedge funds tracked by Insider Monkey had stakes in Booking Holdings Inc. (NASDAQ:BKNG) as of the end of the last quarter of 2022. The most significant stakeholder of Booking Holdings Inc. (NASDAQ:BKNG) during this period was Harris Associates of Natixis Global Asset Management which had a $1 billion stake in the company.
Ensemble Capital made the following comment about Booking Holdings Inc. (NASDAQ:BKNG) in its Q1 2023 investor letter:
“Booking Holdings Inc. (NASDAQ:BKNG) (+31.61%): Despite all of the reasonable worries about a recession or high inflation stopping consumers from spending, these worries have remained entirely absent from the global travel industry. In February, Booking, the largest global online travel agency, reported 39% growth in the number of hotel room nights booked despite large increases in the average price of hotel rooms. The company said that demand accelerated in January. The company has been busily buying back shares, causing total shares outstanding to drop by 8% over the course of 2022. The company guided to continued double digit growth in 2023 and announced a new buyback plan equal to 24% of the company’s market capitalization.”
2. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 91
Tesla, Inc. (NASDAQ:TSLA) remains a decent high-growth stock to invest in according to hedge funds. During the first quarter of 2023 Tesla, Inc. (NASDAQ:TSLA)’s revenue jumped about 24.2% year over year to reach $23.3 billion. However, the figure missed estimates by $60 million. Tesla, Inc. (NASDAQ:TSLA) received downgrades from several analysts after the quarterly report, but Cathie Wood’s ARK, which is a significant shareholder in Tesla, Inc. (NASDAQ:TSLA), issued a $2000 price target for the stock.
As of the end of the first quarter of 2023, ARK Investment Management has a $1.12 billion stake in Tesla, Inc. (NASDAQ:TSLA). At the end of the fourth quarter of 2022, 91 hedge funds in Insider Monkey’s database had stakes in the company.
Aristotle Atlantic Focus Growth Strategy made the following comment about Tesla, Inc. (NASDAQ:TSLA) in its Q1 2023 investor letter:
“Tesla, Inc. (NASDAQ:TSLA) was a negative contributor to performance due to our underweight position relative to Russell 1000 Growth Index, as the company had strong performance in Q1. The strength occurred after the company partially reversed a previously announced price cut for its electric vehicles following a period of strong demand. Tesla also reported better-than-expected results for Q4 2022 during the first quarter.
Tesla Motors designs, develops, manufactures, and markets high-performance, technologically advanced electric cars and solar energy generation and energy storage products. Tesla sells more than five fully electric cars, among others, the Model X and Y SUVs, as well as the Model S sedan and Model 3 sedan. The company has a growing global network of Tesla Superchargers, which are industrial grade, high-speed vehicle chargers, typically placed along well-traveled routes and in and around dense city centers to allow Tesla owners quick and reliable charging. Tesla offers certain advanced driver assist systems under its Autopilot and Full Self-Driving options. US customers generate nearly half of Tesla’s sales.
We see Tesla as the leading manufacturer of battery powered electric vehicles (EVs). The company has achieved scaled production of EVs before the other large automobile manufacturers. The company’s technology in battery production and self-driving technology is more mature than competitors’ offerings. EVs are one of the fastest growing categories within automobile manufacturing. The profit margin in the automotive segment is significantly above automotive competitors which provides the company flexibility to price its vehicles more strategically as the competition eventually scales up their EV production. The direct-to-consumer sales model gives the company more control over its relationship with its customers as well as a source of higher profit margin since there is no dealership share of the profits.”
1. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 135
Despite being a mature company, Uber Technologies, Inc. (NYSE:UBER) continues to grow. During the fourth quarter of 2022 Uber Technologies, Inc. (NYSE:UBER) saw its revenue jump 48.8% year over year to reach $8.6 billion, beating analyst estimates by $90 million. GAAP EPS in the period came in at $0.29, beating estimates by $0.45.
Uber Technologies, Inc. (NYSE:UBER) is one of the most popular fast growth stocks among the elite hedge funds tracked by Insider Monkey. 135 hedge funds reported owning stakes in Uber Technologies, Inc. (NYSE:UBER) as of the end of the fourth quarter of 2022. The biggest hedge fund stakeholder of Uber Technologies, Inc. (NYSE:UBER) was Panayotis Takis Sparaggis’s Alkeon Capital Management which owns a $317 million stake in the company.
Artisan Partners made the following comment about Uber Technologies, Inc. (NYSE:UBER) in its Q3 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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