5 Growth Stocks with Upside Potential

3. Progyny, Inc. (NASDAQ:PGNY)

Number of Hedge Fund Holders: 26  

Stock performance over the past six months through November 25: +5.5%  

Progyny, Inc. (NASDAQ:PGNY) is a benefits management company. Since it was launched around five years ago, the company has seen covered lives grow 25 times. The employer clients have climbed from just five to more than 180 during the period. The company guided more than $775 million in revenue for 2022, reflecting growth of around 55%. The net income over the period is expected to be around $7 million. Despite these numbers, the firm is yet to reach full scale, attesting to the bright growth prospects of the stock. 

Progyny, Inc. (NASDAQ:PGNY) has rapidly become the biggest brand in fertility management, giving it an early mover advantage in the space and also helping it build a core base. The firm has a retention rate of nearly 100%. 

At the end of the fourth quarter of 2021, 26 hedge funds in the database of Insider Monkey held stakes worth $113 million in Progyny, Inc. (NASDAQ:PGNY), compared to 28 in the previous quarter worth $200 million.

In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Progyny, Inc. (NASDAQ:PGNY) was one of them. Here is what the fund said:

“Improving health remains a key impact theme for the portfolio, and over the past year or so we have increased our exposure to the health care sector, through the addition of Progyny, Inc. (NASDAQ:PGNY), a leading provider of fertility benefit management services to self-insured employers that offers a rare win-win-win for employers, employees, health systems and doctors, with clear savings and quality improvements.”