5 Best IPO Stocks To Buy Heading Into 2023

4. ZoomInfo Technologies Inc. (NASDAQ:ZI)

Number of Hedge Fund Holders: 50

IPO Year: 2020

ZoomInfo Technologies Inc. (NASDAQ:ZI) is a software company that provides an intelligence platform to sales and marketing teams. Its cloud-based platform provides a comprehensive analysis of organizations and professionals. The principal market for ZoomInfo Technologies Inc. (NASDAQ:ZI) is the US, which accounts for the majority of the company’s revenues.

On October 5, 2022, an analyst at Morgan Stanley, Elizabeth Porter, began covering ZoomInfo Technologies Inc. (NASDAQ:ZI) with a price target of $66.  Elizabeth Porter has an Overweight rating on the stocks, and her confidence in the company stems from the company’s strong growth prospects. The analyst believes that ZoomInfo Technologies Inc. (NASDAQ:ZI) can consistently increase revenue by more than 30% while also achieving operating margins of more than 40%.

As per Insider Monkey’s database, 50 hedge funds remained bullish on ZoomInfo Technologies Inc. (NASDAQ:ZI) at the end of the third quarter. Citadel Investment Group had the biggest stake in the company at the end of the third quarter.

Here is what Baron Funds has to say about ZoomInfo Technologies Inc. (NASDAQ:ZI) in its Q3 2021 investor letter:

Favorable stock selection in Communication Services came from ZoomInfo Technologies Inc., a leading go-to-market intelligence platform for sales and marketing teams. We believe that the company’s recent acquisition of Chorus.ai, a conversation intelligence business, dramatically increased the data visibility and benefits that ZoomInfo can offer its clients. In addition, its organic revenues reaccelerated for a fifth consecutive quarter and management significantly raised its earnings guidance.