In this article, we discuss the 5 Reddit stocks to buy in November. If you want to read our detailed analysis of these stocks, go directly to the 10 Reddit Stocks to Buy in November.
5. Palantir Technologies Inc. (NYSE:PLTR)
Number of Hedge Fund Holders: 26
Palantir Technologies Inc. (NYSE:PLTR) markets software products for intelligence services. The company works closely with the US government in this regard. The firm has strong fundamentals. It recently posted earnings for the third quarter, reporting earnings per share of $0.04, in line with estimates. The revenue over the period was $392 million, up 35% year-on-year and beating predictions by $5.5 million.
In early October, Palantir Technologies Inc. (NYSE:PLTR) had announced that it had won a contract from the US government to build a data and analytics foundation for the Capability Drop 2 (CD-2) program.
At the end of the second quarter of 2021, 26 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in Palantir Technologies Inc. (NYSE:PLTR), down from 32 in the preceding quarter worth $1.1 billion.
In its Q4 2020 investor letter, Guardian Fund, an asset management firm, highlighted a few stocks andPalantir Technologies Inc. (NYSE:PLTR) was one of them. Here is what the fund said:
“In October, we bought a stake in Palantir. Earlier, in June, our concentrated Tech Fund, which has a mandate to also buy shares in the secondary market, bought shares of Palantir from insiders, before the direct listing. At the price we bought, the equity had much more upside than downside. Palantir is operating a software platform that functions as the digital infrastructure for data-driven operations and decision making. The software helps to structure and capture context in data of large corporations. Governments are increasingly realizing that they have to deal with serious data challenges and cyber risk. As most governments cannot attract the most talented software engineers, they need private enterprises such as Palantir to help them build solid infrastructure. Foundry, Palantir’s software for enterprises, is used by companiesto make safer cars and airplanes or to accelerate cancer research. The speed to bring new clients on board is improving and revenues will grow faster than expenses. Palantir has a long runway of growth ahead.”
4. Workiva Inc. (NYSE:WK)
Number of Hedge Fund Holders: 31
Workiva Inc. (NYSE:WK) is an applications software firm that markets cloud-based compliance and regulatory reporting solutions. It recently smashed analyst predictions on earnings per share and revenue for the third quarter. Analysts are largely bullish on the firm, with Truist analyst Terry Tillman recently reiterating a Buy rating on the stock with a price target of $150, noting the business momentum of the firm was reflected in billings and revenue growth.
Martin Vanderploeg, the CEO of Workiva Inc. (NYSE:WK), said during the earnings call that the company achieved 30% organic growth in subscription and support revenue and approximately 28% in total revenue between June and September this year.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Renaissance Technologies is a leading shareholder in Workiva Inc. (NYSE:WK) with 1.1 million shares worth more than $128 million.
In its Q2 2021 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and Workiva Inc. (NYSE:WK) was one of them. Here is what the fund said:
“Workiva is a global provider of cloud-based financial reporting and compliance solutions. Compiling data from disparate and unconnected systems across various departments within an organization for reporting and compliance purposes is an incredibly manual process. An evolving regulatory landscape over the past decade has not only made this increasingly burdensome, but has also required further management oversight. Workiva’s solutions aggregate this data and enable companies to have more efficiency in and greater visibility into regulatory reporting processes. In addition to this strong value proposition, we believe organizations are also on the cusp of shifting their software spend from front-office to backoffice departments, particularly in the CFO office where the shift to remote work during the pandemic highlighted the need to bring these workflows up to date. We also believe the company’s expanded product capabilities—which now go beyond its core SEC reporting capabilities—will lead to more use cases for new and existing customers, providing Workiva with a plethora of new growth opportunities in the periods ahead.”
3. Penn National Gaming, Inc. (NASDAQ:PENN)
Number of Hedge Fund Holders: 40
Penn National Gaming, Inc. (NASDAQ:PENN) is a casinos and gaming firm based in Pennsylvania. Redditors have highlighted the post-pandemic recovery and the uptick in travel and casino betting as some of the growth catalysts for the stock that has been hit after a key shareholder of the firm had a damaging article published about them in the press. Analysts are viewing the stock with caution after the publication of the piece.
JPMorgan analyst Joseph Greff recently maintained an Overweight rating on Penn National Gaming, Inc. (NASDAQ: PENN) stock with a year-end 2022 price target of $81, underlining that the fallout of the damaging press coverage was “concerning”.
At the end of the second quarter of 2021, 40 hedge funds in the database of Insider Monkey held stakes worth 1 billion in Penn National Gaming, Inc. (NASDAQ:PENN), down from 42 in the previous quarter worth $907 million.
In its Q1 2021 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Penn National Gaming, Inc. (NASDAQ:PENN) was one of them. Here is what the fund said:
“Shares of regional casino operation Penn National Gaming, Inc. increased in the quarter on strong share gains in the online sports betting and gaming markets in Michigan and the opening of the large Illinois online sports betting market. Strong sequential growth in revenue and sustained margin improvement in its brick and mortar operations also helped boost the share price. We think these positive developments will lead to improvements in the company’s balance sheet and its EBITDA to free cash flow conversion.”
2. Cloudflare, Inc. (NYSE:NET)
Number of Hedge Fund Holders: 43
Cloudflare, Inc. (NYSE:NET) operates as a cloud services firm. Cowen analyst Shaul Eyal recently raised the price target on the stock to $250 from $200 and kept an Outperform rating, noting the enterprise adoption of cloud security services marketed by the company that were helping drive top line growth. On November 4, the firm had beat market predictions on earnings per share and revenue for the third quarter.
Cloudflare, Inc. (NYSE:NET) stock has also benefited from a recent summit on cybersecurity at the White House after the US government issued new standards for the private industry to increase protection of digital assets.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Cloudflare, Inc. (NYSE:NET) with 57 million shares worth more than $165 million.
In its Q4 2020 investor letter, Alger Mid Cap Focus Fund, an asset management firm, highlighted a few stocks and Cloudflare, Inc. (NYSE:NET) was one of them. Here is what the fund said:
“Cloudflare. Inc. provides a broad range of network services to businesses of all sizes across the world. Cloudflare’s intelligent global network spans more than 200 cities in over 100 countries. It offers network security, performance and reliability to a growing portion of global web traffic. Today. over 15% of global internet requests go through Cloudflare. Cloudflare’s serverless network design allows this global network to be a key component layer as new developments for edge cornputing. 5G and Internet of Things increase the importance of secure. reliable edge networks. Cloudflare stock outperformed in the fourth quarter following the announcement of Cloudflare One, a cloud-bas. network-as-a-service platform designed to replace the traditional enterprise network infrastructure. The Cloudflare One solution merges existing Cloudflare access and security solutions along with new enterprise-specific features into a unified Zero Trust network that can be managed through a single “pane of glass.” or display screen. With the rapid shift to remote work caused by the pandemic, this product increases Cloudflare’s potential for winning business from enterprise customers seeking to adapt to this new business environment.
While Cloudflare One adoption is still early. Cloudflare has already started to demonstrate an improved ability to sell to large customers. When discussing its third quarter results. Cloudflare said that it is continuing to sign up larger enterprise customers. including its first client to generate more than $10 million in annual recurring revenue. Cloudflare has just started to better monetize its more than 100.000 paying customer base. which along with continued product innovation, gives the company strong growth potential.”
1. Peloton Interactive, Inc. (NASDAQ:PTON)
Number of Hedge Fund Holders: 67
Peloton Interactive, Inc. (NASDAQ:PTON) makes and sells interactive fitness products. The company has become popular on Reddit forums as the short interest on the stock climbed above 9% after reports that the firm could miss market estimates on earnings for the fourth quarter due to higher input prices and increased freight costs. There is also concern about the reopening of gyms and the impact it would have on the stock.
However, RBC Capital analyst Daniel Perlin is bullish on Peloton Interactive, Inc. (NASDAQ:PTON). He recently gave the stock an Outperform rating with a price target of $175, highlighting the partnerships of the firm with retail giant Amazon in an investor note.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Tiger Global Management LLC is a leading shareholder in Peloton Interactive, Inc. (NASDAQ:PTON) with 8.8 million shares worth more than $1 billion.
In its Q2 2021 investor letter, Carillon Tower Advisers, an asset management firm, highlighted a few stocks and Peloton Interactive, Inc. (NASDAQ:PTON) was one of them. Here is what the fund said:
“Peloton Interactive operates a connected fitness platform offering live and on-demand classes allowing users to exercise at home. The firm’s shares were pressured in the quarter after Peloton announced a voluntary recall for both its legacy treadmill (Peloton Tread+) and its newly-launched base model treadmill (Peloton Tread). The issue surrounding the latter is somewhat troubling, as it appears it may be the result of an engineering flaw. This new treadmill offering was expected to be a key growth driver in the second half of 2021, and this development reduces our confidence in Peloton’s product pipeline. Therefore, we sold the stock.”
You can also take a peek at Forget Tesla (TSLA): 10 Cheap EV Stocks to Buy Now and 15 Best Consumer Discretionary Stocks to Buy Now.
