5 High Growth IT Stocks to Buy

In this article, we discuss 5 high growth IT stocks to buy. If you want to see more stocks in this selection, check out 11 High Growth IT Stocks to Buy. 

5. Grid Dynamics Holdings, Inc. (NASDAQ:GDYN)

Number of Hedge Fund Holders: 19

Quarterly Revenue Growth YoY as of September 29, 2022: 40.10%

Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) is a California-based provider of enterprise-level digital transformation services in the areas of search, analytics, and release automation for corporations in North America, Europe, and internationally. On December 27, Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) declared the acquisition of Mutual Mobile. The purpose of this acquisition was to expand Grid Dynamics Holdings, Inc. (NASDAQ:GDYN)’s portfolio of digital transformation services, which will enable them to cater to the ever-increasing need for developing cutting-edge digital experiences for global brands. It is one of the top high growth IT stocks to monitor. 

On December 15, JPMorgan analyst Puneet Jain maintained an Overweight rating on Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) but lowered the firm’s price target on the shares to $17 from $18. The analyst has re-evaluated the ratings and lowered estimates for IT and business process outsourcing services, given the signs of companies tightening their budgets in the first half of 2023. Although growth stocks performed poorly in 2022, the analyst anticipates a better performance in 2023. However, he cautioned that the revenue estimates provided by the Street for 2023 could potentially be overly optimistic.

According to Insider Monkey’s third quarter database, 19 hedge funds were bullish on Grid Dynamics Holdings, Inc. (NASDAQ:GDYN), compared to 13 funds in the prior quarter. 

Here is what Baron Funds specifically said about Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) in its Q3 2022 investor letter:

“We added to our Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) position as part of the company’s equity raise to fund potential future acquisitions. Management has proven to be successful acquirers in the recent past, and we would expect a transaction to be nicely accretive and help diversify the business geographically. The company is growing exceptionally (52% organic sales growth for the second quarter of 2022), and we believe EPS can compound at 20% to 30% for many years, as Grid Dynamics provides its customers technology consulting, software development, and data analytics for their digital transformation.”