5 Growth Stocks with Upside Potential

In this article, we discuss some growth stocks with long-term potential. If you want to read about some more stocks with explosive growth potential, go directly to 10 Growth Stocks with Upside Potential.

5. Trupanion, Inc. (NASDAQ:TRUP)

Number of Hedge Fund Holders: 20   

Stock performance over the past six months through November 25: -14%

Trupanion, Inc. (NASDAQ:TRUP) provides medical insurance for cats and dogs on a monthly subscription. Rising pet ownership numbers, especially in light of the pandemic trends, have also increased the demand for pet insurance services. According to the American Pet Products Association, pet ownership in the US rose to a record high of 70% of households in 2020. This figure was only at 56% in 1988. Even as the pandemic fades, these growth trends remain in place. The firm beat market expectations on revenue for the first quarter of 2022 by $3.6 million. 

On February 24, Bank of America analyst Joshua Shanke upgraded Trupanion, Inc. (NASDAQ:TRUP) stock to Buy from Neutral with a price target of $118, backing the firm to deliver on a 60-month earnings growth target. 

At the end of the fourth quarter of 2021, 20 hedge funds in the database of Insider Monkey held stakes worth $362 million in Trupanion, Inc. (NASDAQ:TRUP), up from 16 in the preceding quarter worth $259 million. 

In its Q3 2021 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Trupanion, Inc. (NASDAQ:TRUP) was one of them. Here is what the fund said:

“Trupanion, Inc. (NASDAQ:TRUP) reported mixed earnings results, mostly due to higher-than-expected costs of new pet acquisition. The increased spending is intended to drive future growth. We continue to believe Trupanion’s long-term growth prospects and competitive positioning remain compelling in an underpenetrated U.S. pet insurance market.”