Why Nevro Corp (NVRO) Stock is a Compelling Investment Case

Brown Advisory recently released its Q2 2020 Investor Letter, a copy of which you can download here. The Small-Cap Growth Fund posted a return of 34.59% for the quarter, outperforming its benchmark, the Russell 2000 Growth Index which returned 30.59% in the same quarter. You should check out Brown Advisory’s top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash.

In the said letter, Brown Advisory highlighted a few stocks and Nevro Corp (NYSE:NVRO) is one of them. Nevro Corp (NYSE:NVRO) is a medical device company. Year-to-date, Nevro Corp (NYSE:NVRO) stock gained 11.3% and on July 30th it had a closing price of $132.49. Here is what Brown Advisory said:

“Nevro has developed a novel device for the treatment of debilitating and chronic back/leg pain. The implantable and programmable spinal cord stimulator has a current addressable market of approximately $5 billion. However, with future indications such as non-surgical refractory back pain and painful diabetic neuropathy, we believe the company can expand its potential patient base by 11x in coming years.”


In Q1 2020, the number of bullish hedge fund positions on Nevro Corp (NYSE:NVRO)  stock decreased by about 6% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t seem to agree with Nevro’s growth potential. Our calculations showed that Nevro Corp (NYSE:NVRO)  isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we scour multiple sources to uncover the next great investment idea. Cannabis stocks are roaring back in 2020, so we are checking out this under-the-radar stock. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. You can subscribe to our free enewsletter below to receive our stories in your inbox:

Disclosure: None. This article is originally published at Insider Monkey.