In this article, we discuss the 13 best new tech stocks to buy now.
Investments in the technology sector, traditionally seen as one of the most growth-oriented spaces in the market, have nosedived in recent months due to recession fears. Famous growth stocks like Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. (NASDAQ:FB) have all seen their share prices decline by more than 20% this year so far. Investors wary of big tech but keen on recovery momentum should consider investing in new tech names that offer the same growth potential at much cheaper rates.
New technology stocks can be safely seen as firms that demonstrate rates of growth that outpace the market average. Like growth stocks, these firms offer investors the chance to invest in firms whose revenue or net income is expected to grow faster than the market average. However, investments in new tech stocks can be more volatile as compared to established stocks. Investors should keep in mind that pouring money in new tech increases chances of earning profits from rapid price appreciation.
There are several new tech stocks that operate on different scales, such as highly promising small businesses to industry setups. Some of the key metrics that investors should look into for these firms include growing sales, revenues, and cash flows. These firms tend to have high valuations and their high prices, relative to profits, makes them more expensive. In 2022, there has been a mass exodus away from new tech towards value options in light of a macro slowdown that has pummeled the stock market.
However, the third-quarter earnings show the anticipated economic slowdown might not be as bad as Wall Street expected. Recent data shows 26% fewer CEOs using the word recession in the third-quarter conference calls compared to the second quarter. Moreover, in the third quarter of 2022, 69% of S&P 500 companies beat earnings estimates, while 71% beat the consensus revenue estimates. Since 2000, growth stocks have outperformed their value counterparts. However, this equation has changed in the past few months.
Photo by Ruben Sukatendel on Unsplash
Investors interested in value offerings should also keep in mind that past performance does not predict future performance and picking individual stocks can also be a risky business. Many investors buy index mutual funds and exchange-traded funds, which bundle hundreds or thousands of stocks into a single investment. Even though these carry lower levels of risk, it is not very often that they outperform the broader market. New tech stocks, on the other hand, are a riskier but more rewarding bet.
Our Methodology
The companies that operate in the technology sector and debuted on the stock market in 2022 were selected for the list. Special importance was assigned to outlining the basic business fundamentals and analyst ratings for each firm to provide readers with some context so they can make more informed investment choices. Data from around 900 elite hedge funds tracked by Insider Monkey in the third quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.
Best New Tech Stocks to Buy Now
13. Ivanhoe Electric Inc. (NYSE:IE)
Number of Hedge Fund Holders: 11
Ivanhoe Electric Inc. (NYSE:IE) operates as a mineral exploration and development company in the United States. On December 8, Ivanhoe Electric announced that its subsidiary, Cordoba Minerals Corp, and JCHX Mining Management Co., Ltd. have agreed to a strategic arrangement for the joint development of Cordoba’s flagship Alacran Project in Colombia. Ivanhoe Electric owns a 63.27% interest in Cordoba.
At the end of the third quarter of 2022, 11 hedge funds in the database of Insider Monkey held stakes worth $71.5 million in Ivanhoe Electric Inc., compared to 12 the preceding quarter worth $54.4 million.
Unlike Amazon.com, Inc., Microsoft Corporation, and Meta Platforms, Inc., Ivanhoe Electric Inc. is one of the best new tech stocks to buy now according to elite investors.
12. Pagaya Technologies Ltd. (NASDAQ:PGY)
Number of Hedge Fund Holders: 11
Pagaya Technologies Ltd. (NASDAQ:PGY) operates as a financial technology company in Israel, the United States, and the Cayman Islands. On November 10, Pagaya Technologies posted earnings for the third quarter of 2022, reporting losses per share of $0.02. The revenue over the period was $204 million, up 49.3% compared to the revenue over the same period last year and beating market estimates by $26 million.
On October 12, Wedbush analyst David Chiaverini initiated coverage of Pagaya Technologies Ltd. stock with a Neutral rating and $2 price target, noting that funding capacity is the key governor on growth for the company.
At the end of the third quarter of 2022, 11 hedge funds in the database of Insider Monkey held stakes worth $189.7 million in Pagaya Technologies Ltd., compared to 15 in the previous quarter worth $127.8 million.
11. SpringBig Holdings, Inc. (NASDAQ:SBIG)
Number of Hedge Fund Holders: 12
SpringBig Holdings, Inc. (NASDAQ:SBIG) operates a software platform that provides customer loyalty and marketing automation solutions to cannabis retailers and brands in the United States and Canada. On August 26, On December 8, SpringBig Holdings posted earnings for the second quarter of 2022, reporting losses per share of $0.14, beating market estimates by $0.02. The revenue over the period was $6.6 million, up 13.8% compared to the revenue over the same period last year and missing market estimates by $0.4 million.
At the end of the third quarter of 2022, 12 hedge funds in the database of Insider Monkey held stakes worth $297,000 in SpringBig Holdings, Inc., compared to 16 in the previous quarter worth $1 million.
10. Alvotech (NASDAQ:ALVO)
Number of Hedge Fund Holders: 13
Alvotech (NASDAQ:ALVO) develops and manufactures biosimilar medicines for patients worldwide. On December 7, Alvotech said that STADA, a pharmaceutical company, and Alvotech are launching Hukyndra high-concentration, low-volume, citrate-free formulation of adalimumab in several European countries. Hukyndra is a biosimilar to AbbVie’s drug Humira.
At the end of the third quarter of 2022, 13 hedge funds in the database of Insider Monkey held stakes worth $115.6 million in Alvotech, compared to 14 the preceding quarter worth $134.2 million.
9. Semantix, Inc. (NASDAQ:STIX)
Number of Hedge Fund Holders: 14
Semantix, Inc. (NASDAQ:STIX) provides consulting, training, and support for big data solutions, data science, enterprise search, machine learning, and Internet of things. On August 31, Semantix Inc. announced that it has acquired Zetta Health Analytics, a Brazilian health data analytics firm, to expand its capabilities in serving healthcare clients through SaaS data solutions. Semantix expects the acquisition to complement the development of the Semantix Data Platform.
At the end of the third quarter of 2022, 14 hedge funds in the database of Insider Monkey held stakes worth $2.5 million in Semantix, Inc..
8. Nogin, Inc. (NASDAQ:NOGN)
Number of Hedge Fund Holders: 15
Nogin, Inc. (NASDAQ:NOGN) operates as an e-commerce, technology platform provider in the apparel and ancillary industry’s multichannel retailing, business-to-consumer, and business-to-business domains. Some of the products it provides include website development, photography, content management, customer service, marketing, warehousing, and fulfillment. The firm is headquartered in California.
At the end of the third quarter of 2022, 15 hedge funds in the database of Insider Monkey held stakes worth $1.7 million in Nogin, Inc..
7. Gogoro Inc. (NASDAQ:GGR)
Number of Hedge Fund Holders: 15
Gogoro Inc. (NASDAQ:GGR) manufactures two-wheeled electric vehicles. On September 28, Gogoro signed a NT$10.7 billion five-year credit facility agreement, with a two-year extension option, with a group of ten syndicated banks. The facility consists of two term loans and one revolving facility that will be used to pay off a current outstanding credit facility.
On November 11, Benchmark analyst Fawne Jiang maintained a Buy rating on Gogoro Inc. stock and lowered the price target to $7 from $11, highlighting the company’s third quarter earnings report.
At the end of the third quarter of 2022, 15 hedge funds in the database of Insider Monkey held stakes worth $20.5 million in Gogoro Inc., compared to 14 in the previous quarter worth $38.5 million.
6. Polestar Automotive Holding UK PLC (NASDAQ:PSNY)
Number of Hedge Fund Holders: 15
Polestar Automotive Holding UK PLC (NASDAQ:PSNY) manufactures and sells premium electric vehicles. On October 12, Polestar Automotive Holding unveiled the Polestar 3 electric performance SUV. The first version of the all-electric five-passenger SUV is priced at $84,000, but lower-costs versions are expected to follow. This is the first car from the company to feature centralized computing with the NVIDIA DRIVE core computer.
On November 16, Citi analyst Itay Michaeli resumed coverage of Polestar Automotive Holding UK PLC. stock with a Buy rating and $12 price target, noting the company’s recent achievements, which include maintaining its volume targets until 2022, obtaining extra funding, and carrying out its plans to roll out new products.
At the end of the third quarter of 2022, 15 hedge funds in the database of Insider Monkey held stakes worth $62.7 million in Polestar Automotive Holding UK PLC, up from 12 the preceding quarter worth $91.9 million.
In contrast to Amazon.com, Inc., Microsoft Corporation, and Meta Platforms, Inc., Polestar Automotive Holding UK PLC is one of the best new tech stocks to buy now according to elite investors.
5. Consensus Cloud Solutions, Inc. (NASDAQ:CCSI)
Number of Hedge Fund Holders: 16
Consensus Cloud Solutions, Inc. (NASDAQ:CCSI) provides information delivery services with a software-as-a-service platform worldwide. On November 13, Consensus Cloud Solutions Inc. unveiled the availability of Consensus Conductor, a provider of seamless integration technology which supports the latest standards for connectivity while addressing a wide range of interoperability challenges from the simple to the extremely complex.
On November 21, JPMorgan analyst Anne Samuel initiated coverage of Consensus Cloud Solutions, Inc. stock with a Neutral rating and $54 price target, noting that the company faces challenges due to the macro environment in the near future.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Gates Capital Management is a leading shareholder in Consensus Cloud Solutions, Inc. with 1.1 million shares worth more than $53.5 million.
4. Global Business Travel Group, Inc. (NYSE:GBTG)
Number of Hedge Fund Holders: 23
Global Business Travel Group, Inc. (NYSE:GBTG) provides a business-to-business (B2B) travel platform. On November 10, Global Business Travel posted earnings for the third quarter of 2022, reporting losses per share of $0.43. The revenue over the period was $488 million, up 147.7% compared to the revenue over the same period last year.
On December 7, Citi analyst Peter Christiansen initiated coverage of Global Business Travel Group, Inc. stock with a Neutral rating and $6.50 price target, noting that the company’s recovery momentum picked up after a slight slowdown in the third quarter.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm Marshall Wace LLP is a leading shareholder in Global Business Travel Group, Inc. with 314,388 shares worth more than $1.8 million.
3. ESAB Corporation (NYSE:ESAB)
Number of Hedge Fund Holders: 24
ESAB Corporation (NYSE:ESAB) engages in the formulation, development, manufacture, and supply of consumable products and equipment for use in cutting, joining, and automated welding, as well as gas control equipment. On October 17, ESAB Corp announced that it has acquired Ohio Medical, a global leader in oxygen regulators and central gas systems, from a private investor group for a cash purchase price of $127 million. The company also expects an additional cash tax benefit with a net present value of $15 million.
On October 11, Stifel analyst Nathan Jones maintained a Buy rating on ESAB Corporation stock and lowered the price target to $42 from $48, highlighting that broad indicators and the company’s recent surveys suggest that short cycle industrial demand has weakened a bit.
At the end of the third quarter of 2022, 24 hedge funds in the database of Insider Monkey held stakes worth $138.4 million in ESAB Corporation, compared to 19 in the previous quarter worth $195.6 million.
In its Q3 2022 investor letter, Diamond Hill Capital, an asset management firm, highlighted a few stocks and ESAB Corporation was one of them. Here is what the fund said:
“Fabrication technology company ESAB Corporation posted fairly solid quarterly results, but shares were pressured on concerns of an economic slowdown, particularly in Europe where ESAB is the leading welding player. A recession could be challenging for the company in the near term, but we believe the long-term outlook remains promising. We believe ESAB’s strong position in emerging markets can translate to solid growth over time, while the company’s continuous improvement focused business system can aid in margin expansion, helping it to expand into adjacent areas such as gas control and welding automation.”
2. Bausch + Lomb Corporation (NYSE:BLCO)
Number of Hedge Fund Holders: 25
Bausch + Lomb Corporation (NYSE:BLCO) operates as an eye health company worldwide. On October 24, Bausch + Lomb Corp revealed that it will launch the Project Watson line of health care products for dogs that is focused on eye and ear health. The products include an eye wash, eye chewable supplement, and ear wash and wipes.
On November 3, H.C. Wainwright analyst Yi Chen maintained a Buy rating on Bausch + Lomb Corporation stock and lowered the price target to $20 from $21, highlighting that the company missed the third quarter expectations.
At the end of the third quarter of 2022, 25 hedge funds in the database of Insider Monkey held stakes worth $402.7 million in Bausch + Lomb Corporation, compared to 19 in the previous quarter worth $304.8 million.
1. R1 RCM Inc. (NASDAQ:RCM)
Number of Hedge Fund Holders: 37
R1 RCM Inc. (NASDAQ:RCM) provides technology-driven solutions that transform the patient experience and financial performance of hospitals, health systems, and medical groups. On December 8, R1 RCM posted earnings for the third quarter of 2022, reporting losses per share of $0.07, missing market estimates by $0.19. The revenue over the period was $496 million, up 30.6% compared to the revenue over the same period last year and missing market estimates by $27.69 million.
On December 7, Guggenheim analyst Jack Wallace upgraded R1 RCM Inc. stock to Buy from Neutral with a $15 price target, noting that when the company provides its initial guidance in January, there is greater potential upside than negative for its FY23 expectations.
At the end of the third quarter of 2022, 37 hedge funds in the database of Insider Monkey held stakes worth $446.6 million in R1 RCM Inc., compared to 30 in the preceding quarter worth $262 million.
You can also take a peek at 13 Biggest Meat Processing Companies in the US and 16 Large-Cap Stocks with Insider Buying.
Suggested Articles:
- 15 Biggest Endowments in the US
- 10 Best BDC Stocks To Buy
- Top 13 Gas Tanker Shipping Companies in the World
This article is originally published at Insider Monkey.
