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In this article, we discuss the 11 best aggressive stocks to buy now. If you want to read about some more aggressive stocks, go directly to the 5 Best Aggressive Stocks to Buy Now.
Aggressive stocks are high-risk, high-reward growth stocks that can provide investors with strong returns. Growth stocks offer a substantially higher growth rate as opposed to the mean growth rate prevailing in the market. This is indicated by the historical outperformance of prominent growth names like Amazon.com, Inc. (NASDAQ:AMZN), Alibaba Group Holding Limited (NYSE:BABA), and PayPal Holdings, Inc. (NASDAQ:PYPL) over the past few years, despite economic crises and macro slowdowns. In simple terms, growth stocks are companies that are growing their share prices, revenue, profits or cash flow at faster rates than the market at large.
Despite the relatively stable income from dividends, investors choose growth stocks to earn profits, preferring them over value offerings keeping in mind the trends at the market. Phil Kernen, a portfolio manager with Mitchell Capital, says that growth stocks represent those companies that exhibit strong revenue and earnings growth rates, irrespective of what the economy is doing around them. The best growth stocks are those that take an existing idea and figure out how to scale it in a meaningful way.
Is it time to buy the dip on growth stocks?
These aggressive stocks often look expensive, trading at a high P/E ratio, but such valuations could actually be cheap if the company continues to grow rapidly which will increase the share price. Companies which have aggressive stocks have unique product lines. By using technologies, these companies compete in the market. To increase their growth in industry, companies reinvest their profits to develop even new technologies and give their investors a good benefit in shares and have long term growth.
Investors expect to gain a significant capital gain on the growth stock in a company. This can lead the stocks to be overvalued because of their high price to earnings ratio. Companies which offer growth stocks have innovative patterns and loyal customers. Companies which have the potential to manage and attract more customers may become the growth stock. Many small-cap stocks are considered growth stocks. However, some larger companies may also be growth companies.
Growth stocks seem like an aggressive buy right now considering the macro-economic environment in which inflation and rising rates are slowing down the economy. However, it might be the time to buy the dip on these growth names. According to a report by Forbes Advisor, buying the dip is a valid investment strategy in present conditions. Poppy Fox, who is investment manager at Quilter Cheviot, says that there can be some sound logic in buying shares of companies after their price takes a tumble, particularly if you continue to believe in the core investment case for these companies.
Photo by Ruben Sukatendel on Unsplash
Our Methodology
The companies that operate in the growth sector and have upcoming growth catalysts were selected for the list. Special importance was assigned to outlining the basic business fundamentals and analyst ratings for each firm to provide readers with some context so they can make more informed investment choices. Data from around 900 elite hedge funds tracked by Insider Monkey in the third quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.
Best Aggressive Stocks to Buy Now
11. Spire Global, Inc. (NYSE:SPIR)
Number of Hedge Fund Holders: 10
Spire Global, Inc. (NYSE:SPIR) owns and runs a hardware and intelligent analytics platform that tracks the oceans, skies, and weather. On November 9, Spire Global Inc. posted earnings for the third quarter of 2022, reporting losses per share of $0.16, missing market estimates by $0.06. The revenue over the period was $20.4 million, up 113.4% compared to the revenue over the same period last year and beating market estimates by $0.51 million.
On October 11, Credit Suisse analyst Scott Deuschle initiated coverage of Spire Global, Inc. (NYSE:SPIR) stock with a Neutral rating and $2 price target, highlighting the company's growth potential and the strong unit economics of its core offerings.
At the end of the third quarter of 2022, 10 hedge funds in the database of Insider Monkey held stakes worth $2.2 million in Spire Global, Inc. (NYSE:SPIR), compared to 9 in the previous quarter worth $2.8 million.
Just like Amazon.com, Inc. (NASDAQ:AMZN), Alibaba Group Holding Limited (NYSE:BABA), and PayPal Holdings, Inc. (NASDAQ:PYPL), Spire Global, Inc. (NYSE:SPIR) is one of the growth stocks on the comeback trail as the US economy recovers from a slowdown.
10. Virgin Galactic Holdings, Inc. (NYSE:SPCE)
Number of Hedge Fund Holders: 12
Virgin Galactic Holdings, Inc. (NYSE:SPCE) focuses on the development, manufacture, and operation of spaceships and related technologies for conducting commercial human spaceflight and flying commercial research and development payloads into space. On November 3, Virgin Galactic Holdings declared that it entered into an agreement with Axiom Space, a commercial space company, to support a microgravity research and training mission. The Virgin Galactic spaceflight will prepare an astronaut for an upcoming trip to orbit.
On November 7, investment advisory Jefferies maintained a Buy rating on Virgin Galactic Holdings, Inc. (NYSE:SPCE) stock and lowered the price target to $11 from $14. Analyst Greg Konrad issued the ratings update.
At the end of the third quarter of 2022, 12 hedge funds in the database of Insider Monkey held stakes worth $18.4 million in Virgin Galactic Holdings, Inc. (NYSE:SPCE), compared to 15 in the preceding quarter worth $42.95 million.
9. Dutch Bros Inc. (NYSE:BROS)
Number of Hedge Fund Holders: 13
Dutch Bros, Inc. (NYSE:BROS) operates and franchises drive-thru shops. On November 9, Dutch Bros Inc posted earnings for the third quarter of 2022, reporting earnings per share of $0.09, beating market estimates by $0.01. The revenue over the period was $198.65 million, up 53.0% compared to the revenue over the same period last year and beating market estimates by $3.87 million.
On November 10, Jefferies analyst Andy Barish maintained a Buy rating on Dutch Bros Inc. (NYSE:BROS) stock and lowered the price target to $45 from $55, highlighting that the company reported solid third-quarter same-shop sales and reiterated FY22 EBITDA guidance.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm Marshall Wace LLP is a leading shareholder in Dutch Bros, Inc. (NYSE:BROS) with 1.7 million shares worth more than $52.3 million.
8. Rambus Inc. (NASDAQ:RMBS)
Number of Hedge Fund Holders: 16
Rambus Inc. (NASDAQ:RMBS) provides semiconductor products in the United States, Taiwan, South Korea, Japan, Europe, Canada, Singapore, China, and internationally. On September 12, Rambus announced that it started an accelerated share repurchase program with Wells Fargo Bank to buy back 100 million of its stock, with an initial delivery of 3.1 million shares. The program is expected to be completed in four months.
On November 1, Deutsche Bank analyst Sidney Ho maintained a Buy rating on Rambus Inc. (NASDAQ:RMBS) stock and raised the price target to $34 from $32, highlighting that the company posted encouraging third-quarter results.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm D. E. Shaw is a leading shareholder in Rambus Inc. (NASDAQ:RMBS) with 1.3 million shares worth more than $32.3 million.
7. C3.ai, Inc. (NYSE:AI)
Number of Hedge Fund Holders: 18
C3.ai, Inc. (NYSE:AI) operates as an enterprise artificial intelligence (AI) software company in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. On September 13, C3.ai Inc. announced that it has extended its year-old joint sales and co-development partnership with Google Cloud to provide tighter integration between the two. In this three-year expansion program, the companies will expand joint pilot programs with Fortune 200 companies.
On October 10, Canaccord analyst David Hynes maintained a Hold rating on C3.ai, Inc. (NYSE:AI) stock and lowered the price target to $14 from $16, highlighting that the company’s product is uniquely positioned to solve complex analytics problems for the world's largest companies.
At the end of the third quarter of 2022, 18 hedge funds in the database of Insider Monkey held stakes worth $71.9 million in C3.ai, Inc. (NYSE:AI), compared to 17 in the previous quarter worth $1 billion.
6. UiPath Inc. (NYSE:PATH)
Number of Hedge Fund Holders: 26
UiPath Inc. (NYSE:PATH) provides an end-to-end automation platform that offers a range of robotic process automation (RPA) solutions primarily in the United States, Romania, and Japan. On September 6, UiPath posted earnings for the second quarter of 2022, reporting losses per share of $0.02, beating market estimates by $0.09. The revenue over the period was $242.22 million, up 23.9% compared to the revenue over the same period last year and beating market estimates by $11.54 million.
On September 30, Wells Fargo analyst Michael Turrin maintained an Overweight rating on UiPath Inc. (NYSE:PATH) stock and lowered the price target to $16 from $22, highlighting that the company continues to make necessary changes to adapt to the current environment and maintain share within the burgeoning automation market.
Among the hedge funds being tracked by Insider Monkey, St. Petersburg, Florida-based investment firm ARK Investment Management is a leading shareholder in UiPath Inc. (NYSE:PATH) with 46.1 million shares worth more than $581 million.
In addition to Amazon.com, Inc. (NASDAQ:AMZN), Alibaba Group Holding Limited (NYSE:BABA), and PayPal Holdings, Inc. (NASDAQ:PYPL), UiPath Inc. (NYSE:PATH) is one of the growth stocks on the comeback trail as the US economy recovers from a slowdown.
In its Q3 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and UiPath Inc. (NYSE:PATH) was one of them. Here is what the fund said:
“Over the last three months, we similarly exited UiPath Inc. (NYSE:PATH) due to a change to our original thesis as we believe a new go-to-market strategy for its automation software could impact near-term execution. While we think process automation is a growing market, in a slowing macro environment single solution may be more vulnerable than the platform solutions of software providers who can bundle products to meet a wide range of needs. In addition, UiPath Inc. (NYSE:PATH) has a material component of sales sourced in Europe where the economy is more vulnerable.”
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Disclosure. None. 11 Best Aggressive Stocks to Buy Now is originally published on Insider Monkey.
