5 Best Up And Coming Stocks To Invest In

In this article, we will be taking a look at the 5 best up and coming stocks to invest in. To read our detailed analysis of current stock market trends, you can go directly to see the 11 Best Up And Coming Stocks To Invest In.

5. Bill.com Holdings, Inc. (NYSE:BILL)

Number of Hedge Fund Holders: 45

Bill.com Holdings, Inc. (NYSE:BILL) is an application software company based in San Jose, California. The company is offering fintech solutions and financial automation software to small and medium enterprises.

Will Nance at Goldman Sachs holds a Buy rating and a $136 price target on shares of Bill.com Holdings, Inc. (NYSE:BILL) as of July 13.

Bill.com Holdings, Inc. (NYSE:BILL) was spotted in the portfolios of 45 hedge funds in the first quarter, with a total stake value of $1.1 billion.

This is what Artisan Partners said about Bill.com Holdings, Inc. (NYSE:BILL) in its first-quarter 2023 investor letter:

“We ended our investment campaigns in BILL Holdings, Inc. (NYSE:BILL, ZoomInfo Technologies and First Republic Bank during the quarter. BILL Holdings offers cloud-based applications that simplify, digitize and automate back-office accounts receivable and accounts payable processes for small and medium-sized businesses (SMBs). We view the company’s addressable market as large and its business model attractive. However, we are seeing pressure on SMB payments trends given the slowing economy. Also, we are concerned about Intuit’s expansion into accounts payable automation given a meaningful portion of BILL’s customers (and addressable market) use Intuit’s market-leading QuickBooks accounting software. With our conviction in the thesis wavering, we decided to harvest the position in favor of more compelling opportunities.”

4. MongoDB Inc. (NASDAQ:MDB)

Number of Hedge Fund Holders: 52

Our hedge fund data shows 52 funds long MongoDB Inc. (NASDAQ:MDB) in the first quarter, with a total stake value of $1.1 billion.

MongoDB Inc. (NASDAQ:MDB) is an information technology company based in New York. The company offers a developer data platform allowing users access to its software and data for their operations.

An Outperform rating was maintained on MongoDB Inc. (NASDAQ:MDB) shares by Patrick Walravens at JMP Securities on July 24. The analyst also has a $425 price target on the stock.

ClearBridge Investments made the following comments about MongoDB Inc. (NASDAQ:MDB) in its third-quarter 2022 investor letter:

“We made limited changes to the portfolio in the third quarter. New buys included embryonic positions in several rapid growers — MongoDB, Inc. (NASDAQ:MDB) and Clear Secure (YOU) — whose valuations have come in quite dramatically. MongoDB is a company we followed for many years before its 2017 IPO. The stock looks very attractive trading at a third of its recent peak in November 2021. The company’s database software is growing rapidly and taking share in a $50 billion plus global market.”

3. Snowflake Inc. (NYSE:SNOW)

Number of Hedge Fund Holders: 63

Ittai Kidron at Oppenheimer maintains an Outperform rating and a $220 price target on Snowflake Inc. (NYSE:SNOW) shares as of July 17.

Snowflake Inc. (NYSE:SNOW) operates a cloud-based data storage platform. It is based in Bozeman, Montana.

Snowflake Inc. (NYSE:SNOW) had 63 hedge funds long its stock in the first quarter. Their total stake value was $5 billion.

Here’s what The Ithaka Group said about Snowflake Inc. (NYSE:SNOW) in its first-quarter 2023 investor letter:

“Snowflake Inc. (NYSE:SNOW) is a dominant player in the Data Warehousing market, offering customers the ability to break down data silos and derive value from rapidly growing data sets through Snowflake’s analytical database product, the Data Cloud. The company’s base business is benefitting from a number of secular tailwinds, the three most prevalent being: 1) data-driven decision making, 2) cloud adoption, and 3) the exponential growth of corporate data. The company’s visionary management team, headed by industry veteran Frank Slootman, plans to capture its fair share of this growth through: 1) executing on its land and expand model, 2) acquiring new customers, 3) growing internationally, and 4) expanding its nascent partner network. The stock’s negative contribution in the quarter was due to the timing of Ithaka’s purchase (mid-February) and its small portfolio weighting (100bps).”

2. Lululemon Athletica Inc. (NASDAQ:LULU)

Number of Hedge Fund Holders: 64

Lululemon Athletica Inc. (NASDAQ:LULU) designs and retails athletic apparel, footwear, and accessories. It is a brand that has become highly popular among Gen Z consumers and investors this year.

Noah Zatzkin at Keybanc maintains an Overweight rating on Lululemon Athletica Inc. (NASDAQ:LULU) shares alongside a $425 price target as of July 25.

In total, 64 hedge funds held stakes in Lululemon Athletica Inc. (NASDAQ:LULU) in the first quarter, with a total stake value of $3.5 billion.

Kinsman Oak Capital Partners said the following about Lululemon Athletica Inc. (NASDAQ:LULU) in its first-quarter 2023 investor letter:

“What is relatively new, however, is that we are beginning to see substantial write-downs and impairment charges. For instance, Lululemon Athletica Inc. (NASDAQ:LULU) is already exploring a sale of Mirror, the struggling fitness technology company it bought less than three years ago for half a billion dollars. Lululemon executives recently announced a $433 million impairment charge on the business (-89%). That is not an insignificant amount of money.”

1. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)

Number of Hedge Fund Holders: 72

A Buy rating was reiterated on CrowdStrike Holdings, Inc. (NASDAQ:CRWD) shares by Alex Henderson at Needham on July 14. He also maintained a $170 price target on the stock.

CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is another cloud-based cybersecurity company on our list. It uses big data and artificial intelligence to detect cyber threats and prevent them.

In the first quarter, 72 hedge funds were long CrowdStrike Holdings, Inc. (NASDAQ:CRWD). Their total stake value was $2.4 billion.

Artisan Partners mentioned CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in its first-quarter 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.”

See also 12 Under-the-Radar Stocks That Are on The Move and 10 Undervalued Canadian Stocks To Invest In.