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In this article, we will look at the 12 best growth stocks to buy according to George Soros. If you want to skip reading about George Soros' investment philosophy, you can go directly to 5 Best Growth Stocks To Buy According To George Soros.
George Soros is a Hungarian-born American billionaire investor and philanthropist who is one of the world’s most powerful and influential people. He is known for creating the Open Society Foundations, a network of foundations, partners, and projects in more than 120 countries, and for his philanthropic work in promoting democracy and human rights. Mr. Soros was born in Budapest in 1930 and survived the Nazi occupation of Hungary during World War II. After the war, he moved to England to study at the London School of Economics.
George Soros eventually moved to the United States and made his fortune as a hedge fund manager. In 1970, the billionaire founded Soros Fund Management in New York. After years of stellar performance, George Soros turned Soros Fund Management into a family office which remains closed to outside investors. According to Forbes, George Soros' net worth, as of December 5, is valued at $6.7 billion and he is ranked high on the Forbes 400.
Soros Fund Management's Q3 2022 Investment Portfolio
In the third quarter of 2022, Soros Fund Management's portfolio value appreciated by 1.04% to $5.85 billion, up from $5.61 billion in the preceding quarter. Soros Fund Management initiated 38 positions, increased exposure to 34 securities, reduced its exposure to 33 securities, and exited 39 positions. This article will focus on the 12 best growth stocks in George Soros' investment portfolio, which include Alphabet Inc. (NASDAQ:GOOG), Amazon.com, Inc. (NASDAQ:AMZN), and Salesforce, Inc. (NYSE:CRM).
George Soros of Soros Fund Management
Our Methodology
To compile this list, we reviewed George Soros' 13F portfolio at the close of the third quarter of 2022. We selected the top 12 growth stocks held by Soros Fund Management and ranked them according to the fund's stake in them, from least to most.
Best Growth Stocks To Buy According To George Soros
12. Aptiv PLC (NYSE:APTV)
Soros Fund Management's Stake Value: $20,353,000
Percentage of Soros Fund Management's 13F Portfolio: 0.34%
Number of Hedge Fund Holders: 39
Aptiv PLC (NYSE:APTV) is a leading global technology company that designs, develops, and manufactures electrical, electronic, and safety components and systems for the automotive and commercial vehicle industries. As of September 30, George Soros' hedge fund holds a position worth $20.35 million in the company, which accounts for 0.34% of the fund's portfolio. Aptiv PLC (NYSE:APTV) is ranked among the best growth stocks to buy according to George Soros.
On September 28, Berenberg analyst Jared Maymon took coverage of Aptiv PLC (NYSE:APTV) with a Buy rating and a $130 price target. The analyst noted that the company is capturing more market share as content per vehicle is rising. The company's investments in electrification technology and safety technology put it in a position to continue on this trajectory in the long term, said the analyst. This November, Raymond James analyst Brian Gesuale revised his price target on Aptiv PLC (NYSE:APTV) to $125 from $145 and reiterated an Outperform rating on the shares.
At the close of Q3 2022, 39 hedge funds were long Aptiv PLC (NYSE:APTV) and disclosed positions worth $1.35 billion in the company.
Some of the growth stocks that George Soros has high conviction for include Alphabet Inc. (NASDAQ:GOOG), Amazon.com, Inc. (NASDAQ:AMZN), and Salesforce, Inc. (NYSE:CRM).
11. Tesla, Inc. (NASDAQ:TSLA)
Soros Fund Management's Stake Value: $23,779,000
Percentage of Soros Fund Management's 13F Portfolio: 0.40%
Number of Hedge Fund Holders: 88
On October 19, Tesla, Inc. (NASDAQ:TSLA) posted strong earnings for the fiscal third quarter of 2022. The company reported an EPS of $1.05 and beat Wall Street estimates by $0.05. The company's revenue for the quarter grew by 55.95% year over year and amounted to $21.45 billion. On November 23, Citi analyst Itay Michaeli upgraded Tesla, Inc. (NASDAQ:TSLA) to Neutral from Sell and raised his price target to $176 from $141.33.
Tesla, Inc. (NASDAQ:TSLA) is a financially strong company with a healthy balance sheet and low debt levels. The company has free cash flows of $8.9 billion and a debt-to-equity ratio of 0.06, as of September 30. George Soros is betting big on the company and has a position worth $23.7 million in the company, through his hedge fund. Tesla, Inc. (NASDAQ:TSLA) is ranked among the best growth stocks to buy according to the billionaire.
At the end of the third quarter of 2022, 88 hedge funds were bullish on Tesla, Inc. (NASDAQ:TSLA) and held positions worth $7.39 billion. This is compared to 73 positions in the previous quarter with stakes worth 7.17 billion. The hedge fund sentiment for the stock is positive.
Here is what investment management firm, Alger Capital, had to say about Tesla, Inc. (NASDAQ:TSLA) in its third-quarter 2022 investor letter:
“Tesla, Inc. (NASDAQ:TSLA) is an electric vehicle manufacturer with a significant technological lead in its large and rapidly growing addressable market. Shares outperformed during the quarter despite covid 19 shutdowns at the company’s shanghai production plant early in the period. During this quarter, the company also ramped up production at its newer Germany and Texas plants. While investors were aware of these challenging variables, the company’s quarterly results exceeded expectations thanks to lower-than-expected operating expenses. Investors are aware that ramping up electric vehicle production is challenging and recognize it’s difficult to estimate production rates.”
10. QUALCOMM, Incorporated (NASDAQ:QCOM)
Soros Fund Management's Stake Value: $25,573,000
Percentage of Soros Fund Management's 13F Portfolio: 0.43%
Number of Hedge Fund Holders: 80
QUALCOMM, Incorporated (NASDAQ:QCOM) is a leader in the semiconductor and wireless technology industry and is well-positioned to benefit from the shift to 5G technology, as its chipsets are used in many of the 5G devices currently on the market. At the close of Q3 2022, 80 hedge funds were eager on QUALCOMM, Incorporated (NASDAQ:QCOM) and disclosed positions worth $2.56 billion in the company.
Wall Street is bullish on QUALCOMM, Incorporated (NASDAQ:QCOM). This October, HSBC analyst Frank Lee took coverage of QUALCOMM, Incorporated (NASDAQ:QCOM) with a Buy rating and a $180 price target. The analyst noted that the company has "the most complete technology offering of any chip maker". On November 15, Credit Suisse analyst Chris Caso started coverage of QUALCOMM, Incorporated (NASDAQ:QCOM) with an Outperform rating and a $150 price target.
George Soros is bullish on QUALCOMM, Incorporated (NASDAQ:QCOM) and, as of September 30, holds a position worth $25.5 million in the company through Soros Fund Management. The stock is ranked among George Soros' top growth stock picks.
9. Freshworks Inc. (NASDAQ:FRSH)
Soros Fund Management's Stake Value: $29,366,000
Percentage of Soros Fund Management's 13F Portfolio: 0.5%
Number of Hedge Fund Holders: 27
Freshworks Inc. (NASDAQ:FRSH) is a leading provider of cloud-based CRM software. Founded in 2010, the company’s products are designed to enable customer service teams to provide better customer service experiences. On November 1, Freshworks Inc. (NASDAQ:FRSH) announced earnings for the third quarter of fiscal 2022, in which the company beat EPS estimates by $0.04. The company generated a revenue of $128.76 million, up 33.27% year over year and ahead of Wall Street consensus by $3.28 million.
On November 21, Credit Suisse analyst Rich Hilliker took coverage of Freshworks Inc. (NASDAQ:FRSH) with a Neutral rating and a $14 price target. As of September 30, Soros Fund Management's stakes in the company are valued at $29.3 million and the stock is among George Soros' top growth stocks to buy.
At the close of Q3 2022, Freshworks Inc. (NASDAQ:FRSH) was spotted on 27 investors' portfolios that held collective stakes of $287.6 million. This is compared to 25 hedge funds in the previous quarter with stakes worth $177.45 million. The hedge fund sentiment for the stock is positive.
8. Intuit Inc. (NASDAQ:INTU)
Soros Fund Management's Stake Value: $33,625,000
Percentage of Soros Fund Management's 13F Portfolio: 0.57%
Number of Hedge Fund Holders: 86
Intuit Inc. (NASDAQ:INTU) is a leading global provider of financial management software solutions for small and medium businesses, consumers, and accounting professionals. The company has a long history of success and is well-positioned to capitalize on the current market trends. The company is committed to returning cash to shareholders and, on November 29, declared a quarterly cash dividend of $0.78 per common share. The dividend is payable on January 18. As of December 5, the stock is offering a forward dividend yield of 0.79% and the company has free cash flows of $3.80 billion.
On December 1, Argus analyst Jim Kelleher maintained a Buy rating and his $580 price target on Intuit Inc. (NASDAQ:INTU).
At the end of the third quarter of 2022, 86 hedge funds were long Intuit Inc. (NASDAQ:INTU) and disclosed stakes of $5.11 billion in the company. Of those, $33.62 million were of Soros Fund Management. Intuit Inc. (NASDAQ:INTU) is one of the best growth stocks to buy according to billionaire investor, George Soros.
Here is what RiverPark Funds had to say about Intuit Inc. (NASDAQ:INTU) in its third-quarter 2022 investor letter:
“We took advantage of its 2022 price decline to add a small position in Intuit. INTU is a leading SaaS software solutions provider to small businesses, consumers, and professional accountants, best known for its QuickBooks accounting and TurboTax tax preparation platforms. INTU recently strengthened its personal finance offerings with the acquisitions of Mint and Credit Karma, and its small business offering with the acquisition of email marketing platform Mailchimp. The company is benefitting from the secular shift to digitization for both businesses and consumers. Given its vast amount of valuable personal finance and tax customer data from its 100 million + customer installed base, the company can apply artificial intelligence to the data to generate actionable intelligence for customers, as well as a large cross-selling opportunity across its products.
Given INTU’s less than 5% penetration of its $300 billion market, we believe the company can grow its top-line mid-teens, while improving its high-margin business model of greater than 80% gross margins and greater than 35% EBITDA margin, leading to high-teens EPS growth for the foreseeable future. At about 2% of revenue, the company also requires limited capital expenditures, producing significant and growing FCF, which INTU has used for acquisitions, a small dividend, debt repayment and stock buybacks.”
7. Accenture Plc (NYSE:ACN)
Soros Fund Management's Stake Value: $37,788,000
Percentage of Soros Fund Management's 13F Portfolio: 0.64%
Number of Hedge Fund Holders: 58
Accenture Plc (NYSE:ACN) is a leading global professional services company with a long history of helping clients increase speed to market and improve their efficiency. With its large portfolio of services, Accenture Plc (NYSE:ACN) is well-positioned to capitalize on the growing demand for digital transformation services. The company has a strong track record of delivering high-value, innovative solutions to its clients and is well-positioned to benefit from the increasing need for digital services and the growth in digital spending.
As of September 30, Soros Fund Management's stake in Accenture Plc (NYSE:ACN) is valued at $37.78 million, which covers 0.64% of the fund's 13F portfolio. The stock is one of the best growth stock picks of billionaire George Soros.
This September, Citi analyst Ashwin Shirvaikar revised his price target on Accenture Plc (NYSE:ACN) to $305 from $315 and maintained a Buy rating on the shares. On October 14, JPMorgan analyst Tien-tsin Huang updated his price target on Accenture Plc (NYSE:ACN) to $306 from $329 and reiterated an Overweight rating on the shares.
At the close of the third quarter of 2022, Accenture Plc (NYSE:ACN) was spotted on 58 investors' portfolios that held collective stakes of $3.47 billion in the company. This is compared to 61 positions in the previous quarter with stakes worth $3.16 billion.
Here is what Distillate Capital Partners LLC had to say about Accenture plc (NYSE:ACN) in its third-quarter 2022 investor letter:
“The largest new purchases includes Accenture plc (NYSE:ACN). Accenture modestly lagged the market last quarter and became similarly attractive enough to warrant ownership. Similar to our prior presentations, one way to visualize the current portfolio and note recent changes versus the benchmark is to look at scatter plot of all of Distillate’s FSV holdings versus those in the benchmark with valuation on the vertical axis and free cash ?ow stability on the horizontal axis.”
6. Sierra Wireless, Inc. (NASDAQ:SWIR)
Soros Fund Management's Stake Value: $42,610,000
Percentage of Soros Fund Management's 13F Portfolio: 0.72%
Number of Hedge Fund Holders: 29
Sierra Wireless, Inc. (NASDAQ:SWIR) is a leading provider of device-to-cloud Internet of Things solutions. The company has operations in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company is well-positioned to take advantage of the growing trends in the IoT market, including a focus on 5G and cloud computing technologies. As of December 5, Sierra Wireless, Inc. (NASDAQ:SWIR) has gained 65.23% year to date.
George Soros is betting big on Sierra Wireless, Inc. (NASDAQ:SWIR) and, as of September 30, holds a position worth $42.6 million in the company through Soros Fund Management. The stock is placed high among the best growth stocks to buy according to George Soros.
At the end of Q3 2022, Sierra Wireless, Inc. (NASDAQ:SWIR) was a part of 29 investors' portfolios that disclosed stakes of $556.9 million in the company. This is compared to 23 hedge funds in the preceding quarter with stakes worth $292.4 million. The hedge fund sentiment for the stock is positive.
In addition to Sierra Wireless, Inc. (NASDAQ:SWIR), George Soros is betting big on Alphabet Inc. (NASDAQ:GOOG), Amazon.com, Inc. (NASDAQ:AMZN), and Salesforce, Inc. (NYSE:CRM). Click to continue reading and see the 5 Best Growth Stocks To Buy According To George Soros. Suggested articles:
Disclosure: None. 12 Best Growth Stocks To Buy According To George Soros is originally published on Insider Monkey.
