We recently published a list of the 12 Best Stocks Under $100 to Buy According to Hedge Funds. In this article, we are going to take a look at where Uber Technologies Inc. (NYSE:UBER) stands against other stocks under $100 to buy according to hedge funds.
On April 21, Chris Davis of Davis Advisors appeared on ‘The Exchange’ on CNBC to talk about selectivity in today’s market. Davis pointed out that putting companies in groups like the MAG7 covers their underlying businesses, which can have different fundamentals and therefore prospects. For this reason, he acknowledged that he owns certain stocks from MAG7 but not all. Davis also clarified that his overall focus is on value and growth, which leads him to a diverse set of holdings and not just tech, such as financials and healthcare names. He then argued that the market is shifting back toward selectivity and active management. He suggested that active management is positioned for a resurgence because the indexes have become highly concentrated and richly valued.
Davis acknowledged that while he cannot predict the market’s short-term movements, the present environment is ideal for stock pickers who can identify resilient businesses that are trading at reasonable valuations. He sees this as an opportunity for active management to outperform, as investors move away from momentum-driven index investing toward a more selective approach. He noted the growing popularity of actively managed ETFs as evidence that investors are beginning to act on this shift away from index concentration. He also believes that within the MAG7, only a few companies are truly well-positioned. Similarly, within the S&P 500, only 5% to 10% of companies possess the resiliency and durability needed for such volatile times.
Davis laid out what he sees as the major transitions shaping the current investment environment. First, he described the shift from nearly 15 years of free money to a more normal interest rate environment. Second, he pointed to the end of a multi-decade era of globalization, which was replaced by deglobalization, rising nationalism, and geopolitical tensions. Third, he highlighted the impact of AI. He said that these transitions are occurring against a backdrop of market complacency, with high valuations and concentrated growth expectations.
Our Methodology
We first used the Finviz stock screener to compile a list of the top stocks that were trading under $100 as of April 22. We then selected the 12 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 1000 elite money managers.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A close up view of a hand holding a smartphone, using a ride sharing app.
Uber Technologies Inc. (NYSE:UBER)
Share Price as of April 22: $72.92
Number of Hedge Fund Holders: 166
Uber Technologies Inc. (NYSE:UBER) develops and operates proprietary technology applications in the US, Canada, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. It operates through three segments: Mobility, Delivery, and Freight. The company was formerly known as Ubercab Inc. and changed its name to Uber Technologies Inc. in February 2011.
The company’s progress in the AV space, particularly its partnership with Waymo, positions it well for the future of transportation. Jefferies analyst John Colantuoni recently kept a Buy rating on the stock with a price target of $90. Similarly, Needham and TD Cowen also previously gave the company Buy ratings with respective price targets of $90 and $88.
Analysts believe in the competitive advantage of the company, especially its strategic position in the global mobility and delivery markets, as well as its lower wait times. During Q4 2024, Uber Technologies Inc. (NYSE:UBER) grew its gross bookings by 18% year-over-year. This resulted in the revenue growing 20% during the same time to reach $12 billion.
Hardman Johnston Global Equity Strategy remains bullish on the company while acknowledging the current macroeconomic headwinds. The firm stated the following regarding Uber Technologies Inc. (NYSE:UBER) in its Q4 2024 investor letter:
“During the quarter, we initiated three new positions in Lennar Corporation, Bank of America Corp., and Uber Technologies, Inc. (NYSE:UBER). Uber is a leading platform company that facilitates ride-hailing, food delivery, and freight booking services, which each represent large and underpenetrated markets. Uber is active in more than 10,000 cities and approximately 70 countries globally, and Uber is a market leader with more than 65% market share in nearly all ride-sharing regions in which it operates. Uber should continue to benefit from secular tailwinds, product innovation, expansion, and network effects. The cross-selling of the Uber One membership program should drive both loyalty and engagement. International markets represent half the business and continue to be an important growth driver. Overall, we see sustained healthy topline growth for the company over the next three years with some insulation to global economic trends.”
Overall, UBER ranks 2nd on our list of the best stocks under $100 to buy according to hedge funds. While we acknowledge the growth potential of UBER, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than UBER but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.