In this article, we will take a look at the 5 best young stocks to buy and hold for 20 years. To read our analysis of the recent market trends and market activity, you can go to the 11 Best Young Stocks to Buy and Hold For 20 Years.
5. Klaviyo, Inc. (NYSE:KVYO)
Number of Hedge Fund Holders: 32
Founded in 2012, Boston, Massachusetts-based Klaviyo, Inc. (NYSE:KVYO) provides a SaaS platform that helps store and analyze data for e-commerce brands that enables them to send out personalized marketing emails and messages to potential customers. It boasts more than 135,000 customers.
On November 7, Klaviyo, Inc. (NYSE:KVYO) released its financial results for Q3 2023, the first quarterly report for the company since going public in September this year. Its revenue increased by 48% y-o-y to $176 million while it posted a net loss of $297 million.
This is what ClearBridge Investments, an investment management company, had to say about Klaviyo, Inc. (NYSE:KVYO) in its “ClearBridge Small Cap Growth Strategy” Q3 2023 investor letter:
“Klaviyo is a founder-led software and database platform that provides marketing automation solutions primarily to smaller ecommerce customers. Leveraging a tight integration with ecommerce enablement provider Shopify and a disruptive technology architecture, Klaviyo has experienced rapid growth in a sizable core market, with opportunities to add additional products and customer groups, including the fitness/wellness market, and to expand internationally. Throughout its history, Klaviyo has managed to balance a robust growth rate with disciplined investment and has a path to meaningful long-term profitability.”
4. Arm Holdings plc. (NASDAQ:ARM)
Number of Hedge Fund Holders: 35
Cambridge, UK-based Arm Holdings plc. (NASDAQ:ARM) is the leading technology provider of processor IP. It architects, develops, and licenses high-performance, low-cost, and energy-efficient CPU products and related technology, on which many of the world’s leading semiconductor companies and OEMs rely to develop their products.
Arm Holdings plc. (NASDAQ:ARM) announced the closing of its IPO on September 18, 2023. It comprised the sale of 102.5 million American Depositary Receipts of the company at a price of $51 per share. Its shares are currently trading nearly 25% above the IPO price.
On November 8, Arm Holdings plc. (NASDAQ:ARM) released its financial results for three months ended September 30, 2023. Its revenues increased by 28% y-o-y to $806 million, while it generated a net loss of $196 million.
Arm Holdings plc. (NASDAQ:ARM) shares were held by 35 hedge funds with total value of $1.6 billion, as of September 30. Rajiv Jain’s GQG Partners held the most shares among hedge funds with ownership of 16.4 million shares valued at $877 million. Ken Griffin’s Citadel Investment Group and Paul Singer’s Elliott Management also ranked among the top five hedge fund shareholders of the company.
3. Maplebear, Inc. (NASDAQ:CART)
Number of Hedge Fund Holders: 39
Based in San Francisco, Maplebear, Inc. (NASDAQ:CART), doing business as Instacart, is a leading grocery technology company in North America partnering with more than 1,400 national, regional, and local retail banners to facilitate online shopping, delivery and pickup services from more than 80,000 stores across North America on the Instacart Marketplace.
On November 8, Maplebear, Inc. (NASDAQ:CART) released its financial results for Q3 2023. Its revenue increased by 14% y-o-y to $764 million while it posted a net loss of nearly $2.0 billion compared to a net income of $36 million. It missed EPS consensus estimates by -$3.30 with a normalized EPS of $1.42.
Following the earnings release, JMP Securities analyst Andrew Boone raised the price target on Maplebear, Inc. (NASDAQ:CART) shares to $35 from $33 and maintained a ‘Market Outperform’ rating for the shares.
Like other stocks such as Arm Holdings plc. (NASDAQ:ARM), GE Healthcare Technologies, Inc. (NASDAQ:GEHC), and Kenvue, Inc. (NYSE:KVUE), the shares of Maplebear, Inc. (NASDAQ:CART) are among the 11 best young stocks to buy and hold for 20 years.
2. GE Healthcare Technologies, Inc. (NASDAQ:GEHC)
Number of Hedge Fund Holders: 41
With a history that dates back to 1892, Chicago, Illinois-based, GE Healthcare Technologies, Inc. (NASDAQ:GEHC) is a leading global medical technology, pharmaceutical diagnostics, and digital solutions innovator providing intelligent devices, data analytics, applications, and services, supported by its Edison intelligence platform.
GE Healthcare Technologies, Inc. (NASDAQ:GEHC) went public on January 4 this year through a spinoff from General Electric Company (NYSE:GE). The spinoff was achieved by a pro rata distribution of 80.1% of the company’s shares to the parent company’s shareholders. The remaining shares were retained by the parent company.
On October 31, GE Healthcare Technologies, Inc. (NASDAQ:GEHC) released its financial results for the third quarter of 2023. Its revenues increased by 5% y-o-y to $4.8 billion, while its net income declined by 23% y-o-y to $375 million.
As of Q3 2023, 41 of the 910 hedge funds tracked by Insider Monkey were long GE Healthcare Technologies, Inc. (NASDAQ:GEHC) and held shares worth $556 million.
1. Kenvue, Inc. (NYSE:KVUE)
Number of Hedge Fund Holders: 84
New Jersey-based Kenvue, Inc. (NYSE:KVUE) is the world’s largest pure-play consumer health company by revenue. Formerly the Consumer Healthcare division of Johnson & Johnson (NYSE:JNJ), Kenvue, Inc. (NYSE:KVUE) is home to iconic brands such as Aveeno®, BAND-AID® Brand Adhesive Bandages, Johnson’s®, Listerine®, Neutrogena®, and Tylenol®, among others.
On October 26, Kenvue, Inc. (NYSE:KVUE) released its financial results for Q3 2023 which were nearly in-line with the consensus estimates across the revenue and normalized EPS figures which amounted to $3.9 billion and $0.31, respectively.
Following the earnings release, Canaccord Genuity analyst Susan Anderson lowered the price target on Kenvue, Inc. (NYSE:KVUE) shares to $27 from $28 and maintained a ‘Buy’ rating for the shares. The target price represents a potential upside of 33.33% based on the share price on November 24.
Kenvue, Inc. (NYSE:KVUE) is the best young stock to buy and hold for 20 years based on hedge fund sentiment according to the methodology used by us for preparing this list. Its shares were held by 84 hedge funds with total value of $3.4 billion, as of September 30.
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