5 Stocks to Buy Now Before the Bull Market Begins

In this article, we discuss 5 stocks to buy now before the bull market begins. If you want to see more stocks in this selection, check out “Pretty Good Outlook”: 10 Stocks to Buy Now Before the Bull Market Begins. 

5. Lyft, Inc. (NASDAQ:LYFT)

Number of Hedge Fund Holders: 47

Share Price Decline YTD as of August 16: 56.63%

Lyft, Inc. (NASDAQ:LYFT) is a California-based company that operates a marketplace for on-demand ride sharing in the United States and Canada. Although Lyft, Inc. (NASDAQ:LYFT) stock has plummeted about 57% year to date, the increasing concern about climate change will eventually reduce the number of vehicles owned and people will resort to public transport or ride sharing services. This is a positive catalyst that can make Lyft, Inc. (NASDAQ:LYFT) stock rebound. 

Guggenheim analyst Ali Faghri on August 15 reiterated a Buy rating on Lyft, Inc. (NASDAQ:LYFT) and lowered the price target on the shares to $28 from $32 following the Q2 results. The analyst believes intermediate-term guidance should promote competitive rationalization within the group. He also sees better incremental margins in the next few years.

According to Insider Monkey’s Q1 data, 47 hedge funds were long Lyft, Inc. (NASDAQ:LYFT), up from 43 funds in the earlier quarter. Alkeon Capital Management is the biggest position holder in the company, with 5.6 million shares worth $217.6 million.

Here is what Rowan Street Capital has to say about Lyft, Inc. (NASDAQ:LYFT) in its Q1 2022 investor letter:

“Lyft (NASDAQ:LYFT): We sold Lyft in Q1 ’22 to fund the acquisitions of our 3 new positions as we’ve outlined. We had owned Lyft for a little less than 3 years and realized approximately 50% gain on the stock. The new companies we bought with the proceeds from the sale are significantly better businesses, in our view.”