In this article, we present the list of top 11 stocks with growth potential according to Juniper Investment Company. You can skip our comprehensive analysis of Juniper Investment’s history, investment philosophy, and hedge fund performance, and go directly to Top 5 Stocks With Growth Potential According to Juniper Investment Company.
Alexis Michas and John Bartholdson’s Juniper Investment Company is a New York-based hedge fund that manages a small, highly concentrated portfolio of holdings. The fund’s portfolio managers have over 70 years of combined investment experience and believe that substantial gains can be achieved by bringing a private equity approach to investing in smaller companies with big growth potential.
Through the first quarter of 2020, the Juniper Targeted Opportunity Fund L.P. had delivered compound annual returns of 8.46%. 2017 was a banner year for the fund, as it notched gains of 36.1%. That was sandwiched around years of more modest single-digit gains. At the end of September 2021, Juniper’s 13F portfolio contained just 11 holdings, which were valued at $113.77 million.
In this article, we’ll take a look at all 11 of Juniper’s holdings as of September 30 according to the fund’s latest filing with the SEC, checking out the latest activity with these companies and how Juniper has been trading them recently.
We follow hedge funds like Juniper Investment Company because Insider Monkey’s research has uncovered that their consensus stock picks can deliver outstanding returns.
These stocks were picked from the Q3 portfolio of Juniper Investment Company.
Top 11 Stocks With Growth Potential According to Juniper Investment Company
11. Universal Technical Institute, Inc. (NYSE:UTI)
By far the smallest position in Juniper Investment Company’s 13F portfolio is Universal Technical Institute, Inc. (NYSE:UTI), a new position added during Q3, possibly right near the end of the quarter which may have delayed the fund from buying as many UTI shares as it ultimately intends. Whatever the case may be, Juniper bought 32,494 shares valued at $220,000 as of September 30.
Universal Technical Institute, Inc. (NYSE:UTI), which provides technical training courses in the automotive, marine, and collision repair industries, among others, pulled in $97 million in revenue during its fiscal fourth quarter, a 27% year-over-year growth rate. Hedge funds appear to like Universal Technical Institute, Inc. (NYSE:UTI)’s accelerating earnings and diversification strategy, which included the recent accretive acquisition of the MIAT College of Technology.
10. inTEST Corporation (NYSE:INTT)
Juniper Investment Company owned 269,045 shares of inTEST Corporation (NYSE:INTT) on September 30, unchanged from the previous quarter. The holding was valued at $3.09 million at the end of Q3, down from $4.51 million in the middle of 2021 as inTEST Corporation (NYSE:INTT) shares struggled heavily during Q3. Juniper was one of just 9 hedge funds long the stock, which actually represented a new 8-year high.
inTEST Corporation (NYSE:INTT) serves the semiconductor industry, supplying precision-engineered solutions. In December, inTEST Corporation (NYSE:INTT) announced that it would acquire Acculogic for $9 million. inTEST expects the acquisition to add $9 million in revenue annually and to be accretive to EPS by $0.02.
9. Lincoln Educational Services Corporation (NASDAQ:LINC)
Juniper Investment Company also left its position in Lincoln Educational Services Corporation (NASDAQ:LINC) unchanged during Q3, as it maintained its stake of 563,274 shares. That stake was valued at $3.77 million on September 30, down from $4.38 million a quarter earlier. There was a surge in hedge fund ownership of Lincoln Educational Services Corporation (NASDAQ:LINC) during Q3 2020 alongside the stock nearly doubling in value during that period.
Lincoln Educational Services Corporation (NASDAQ:LINC) pulled in EPS of $0.11 during Q3, beating estimates by over 20%. Revenue was also strong at $89.1 million. For the full year, Lincoln Educational Services Corporation (NASDAQ:LINC) expects revenue growth of between 12% and 14% compared to 2020, as well as adjusted EBITDA of $35 million to $37 million.
8. AstroNova, Inc. (NASDAQ:ALOT)
Juniper Investment Company raised its stake in AstroNova, Inc. (NASDAQ:ALOT) by 12% to 420,877 shares, a stake valued at $6.33 million on September 30. After virtually no hedge fund activity in AstroNova, Inc. (NASDAQ:ALOT) for several years, hedge fund interest began increasing in AstroNova, Inc. (NASDAQ:ALOT) beginning around mid-2018.
In the third quarter of its fiscal year 2022, AstroNova, Inc. (NASDAQ:ALOT)’s bookings increased to $32.3 million despite supply chain challenges during the quarter that hampered sales. That was a 16% year-over-year increase. The data visualization solutions company also saw its backlog rise by an identical 16% mark to $26.8 million.
7. VSE Corporation (NASDAQ:VSEC)
Juniper Investment Company nearly doubled its stake in VSE Corporation (NASDAQ:VSEC) during Q3, adding 93% more shares to its position, lifting it to 144,903 shares, a stake valued at $6.98 million at the end of Q3. VSE Corporation (NASDAQ:VSEC) shares more than doubled in value between the middle of 2020 and Q3 of 2021, while hedge fund positions jumped by 350%.
Hedge funds like what they see from VSE Corporation (NASDAQ:VSEC), as VSE Corporation (NASDAQ:VSEC) has a significant runway in its target markets and segments, which is contributing to meaningful margin expansion. VSE pulled in adjusted EPS of $0.76 in Q3, beating estimates by $0.03, while revenue of $200.6 million was $12.36 million ahead of estimates.
6. Bioventus Inc. (NASDAQ:BVS)
Juniper Investment Company opened a new stake in Bioventus Inc (NASDAQ:BVS) during Q3, buying 603,361 shares, a stake worth $8.54 million at the end of September. 13 hedge funds are shareholders of Bioventus as of September 30 compared to 12 at the end of Q1 following Bioventus Inc (NASDAQ:BVS)’s IPO.
The medical device maker pulled in $104 million with its IPO, which it planned to use to expand its capabilities and fuel its growth. Hedge funds like Bioventus Inc (NASDAQ:BVS)’s potential for consistent double-digit topline growth in the years to come. Bioventus Inc (NASDAQ:BVS) lost $0.03 per share in Q3, but revenue hit $108.9 million, beating estimates by $6.67 million.
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Disclosure: None. Top 11 Stocks With Growth Potential According to Juniper Investment Company is originally published at Insider Monkey.