In this article, we will be taking a look at 5 stocks that will skyrocket. To read our detailed analysis of cheaply-valued stocks that are set to gain in the future, you can go directly to see 10 Stocks That Will Skyrocket.
5. Shopify Inc. (NYSE:SHOP)
Number of Hedge Fund Holders: 72
Share price as of August 10: $40.19
Shopify Inc. (NYSE:SHOP) is an IT company operating an e-commerce platform accessible to users in Canada, the U.S, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company sells custom themes and apps, alongside the registration of domain names. There were 72 hedge funds long Shopify Inc. (NYSE:SHOP) in the first quarter, owning a collective $5.8 billion in shares.
On August 11, Atlantic Equities analyst Kunaal Malde upgraded shares of Shopify Inc. (NYSE:SHOP) from ‘Neutral’ to ‘Overweight’. Malde also placed a $46 price target on the stock.
Shopify Inc.’s (NYSE:SHOP) revenue was $1.3 billion in the second quarter, up 15.7% year-over-year. The company’s EPS is also set to grow by 35.7% over the next three-to-five years. The three-year CAGR for the company is 53% as of this August.
Rowan Street Capital LLC, an investment management firm, mentioned Shopify Inc. (NYSE:SHOP) in its second quarter 2022 investor letter. Here’s what the fund said:
“Tobias Lutke, Shopify (NYSE:SHOP) Founder and CEO
When Tobias Lütke opened an online snowboarding store in 2004, he realized how painfully cumbersome e-commerce software was. So he decided to create Shopify – a platform that made it easy for anyone to open up an online store.
Tobi has built Shopify into one of the most popular e-commerce platforms in the world, with $175 billion in GMV (Gross Merchandise Value) and $4.6 billion in revenues in 2021. SHOP went public in 2015, when revenues were just lightly above $200 million, and the stock is up 1,233% since its IPO. Shopify stock peaked in November 2021 (traded at astronomical 47x sales), which coincided with peak enthusiasm for the tech-driven, “stay-home” stocks. Since then, the stock is down almost 80% and is currently trading at just 6x 2023E sales. We believe that Mr. Market is offering us an exceptional value, at current price levels, for an exceptional company led by a very talented, visionary founder/CEO.”