In this article, we will take a detailed look at the13 Best Booming Stocks to Buy Right Now.For a quick overview of such stocks, read our article5Best Booming Stocks to Buy Right Now.
Despite latest data showing elevated inflation and a decline in retail sales, some major investment firms are looking beyond the short-term market turbulence and issuing highly positive outlook for the broader stock market. Goldman Sachs recently increased its S&P 500 target for 2024 to 5200. Goldman said the primary reason for this target revision was strong earnings and profit estimates. Goldman Sachs' analysts expect strong earnings and growth for IT and communication-services sectors. Some of the best booming stocks of 2023 were from these two sectors, including Microsoft Corp (NASDAQ:MSFT), Apple Inc (NASDAQ:AAPL) and Amazon.com Inc (NASDAQ:AMZN).
Goldman Sachs also said in a note on February 16 that it expects the global manufacturing activity to come back to normal this year. Goldman noted a rate-cut environment is always a positive for risky assets but the market is already pricing in much of the effects of rate cuts that are expected later this year.
Goldman Sachs isn’t the only bullish investment firm in the market. UBS recently increased its 2024 target for the S&P 500 to 5,400. UBS said while latest data shows a hotter-than-expected inflation, it's also an indicator of a strong consumer demand.
"Higher inflation tends to be a positive for stock prices. While the market sold off on more robust CPI and PPI reports last week, our work indicates that these demand-driven readings are constructive for future returns," UBS analysts led by Jonathan Golub said.
Photo by Austin Distel on Unsplash
Methodology
Everyone knows stocks like Microsoft Corp (NASDAQ:MSFT), Apple Inc (NASDAQ:AAPL) and Amazon.com Inc (NASDAQ:AMZN) were booming in 2023. But what are the best booming stocks in 2024 so far? For this article we first used a stock screener to find stocks that have gained over 30% year to date through February 19. From these stocks we picked 13 stocks with the highest number of hedge fund investors. We used Insider Monkey's database of 933 hedge funds updated for the fourth quarter of 2023 to gauge hedge fund sentiment of these stocks. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here).
13. Arm Holdings PLC - ADR (NASDAQ:ARM)
Number of Hedge Fund Investors: 22
Arm Holdings PLC - ADR (NASDAQ:ARM)shares have gained about 86% in 2024 through February 19. The UK-based semiconductor giant went public last year but the shares have been skyrocketing this year amid optimism fueled by AI. The stock recently jumped after Arm Holdings PLC - ADR (NASDAQ:ARM)posted strong Q3 results and gave a strong guidance.
However, Daiwa Securities recently downgraded the stock as the firm believes Arm Holdings PLC - ADR (NASDAQ:ARM) shares have run too much and require a cautious approach.
12. Cullinan Oncology Inc (NASDAQ:CGEM)
Number of Hedge Fund Investors: 22
Cullinan Oncology Inc (NASDAQ:CGEM) shares have gained about 64% year to date. A total of 22 hedge funds in Insider Monkey's database of 933 funds had stakes in the company as of the end of the fourth quarter of 2023.
11. Viking Therapeutics Inc (NASDAQ:VKTX)
Number of Hedge Fund Investors: 25
Viking Therapeutics Inc (NASDAQ:VKTX) shares have gained about 98% since the start of 2024 through February 19. The stock has gained amid takeover speculation. Earlier this month, Betaville said Eli Lilly (LLY) could be one of the companies interested in buying Viking Therapeutics Inc (NASDAQ:VKTX).
During its Q4 earnings call earlier this month, Viking talked about its catalysts and updated on key business developments:
"The ongoing Phase 1b study of VK0214 is being conducted in patients with the adrenomyeloneuropathy or AMN form of X-ALD, which is the most common form of the disorder. This trial is a randomized, double-blind, placebo-controlled multicenter study in adult male patients with AMN. The primary objectives of the study are to evaluate the safety, tolerability and pharmaco*kinetics of VK0214 administered orally once daily for 28 days. The study also includes an exploratory assessment of changes in plasma levels of very long chain fatty acids. We expect to report the top line results from this study in the first half of 2024. In conclusion, 2023 was an exciting and productive year for Viking, with the company achieving significant progress with each of our clinical programs.
During the year, we reported the results from the first Phase 1 trial of VK2735, which demonstrated early signals of efficacy as well as promising safety and tolerability. We also initiated the Phase 1 clinical evaluation of a novel oral formulation of VK2735, which we believe may expand the market opportunity for this compound. In the fall of 2023, we initiated and completed the upsized enrolment of the VENTURE Phase 2 trial to evaluate VK2735’s longer-term clinical benefit in patients with obesity. We look forward to reporting the results from the VENTURE Phase 2 study later this quarter, along with the Phase 1 data from the oral formulation study. We also look forward to reporting data from the VOYAGE Phase 2b study of our thyroid beta receptor agonist, VK2809 in biopsy-confirmed NASH and fibrosis."
Read the entire earnings call transcript here.
10. Applied Therapeutics Inc (NASDAQ:APLT)
Number of Hedge Fund Investors: 25
Applied Therapeutics Inc (NASDAQ:APLT) ranks tenth in our list of the best booming stocks to buy now. The stock has gained about 47% year to date through February 19.
As of the end of the fourth quarter of 2023 25 hedge funds had stakes in Applied Therapeutics Inc (NASDAQ:APLT). The most significant stake in Applied Therapeutics Inc (NASDAQ:APLT)is owned by Fred Knoll's Knoll Capital Management which owns an $18.3 million stake in Applied Therapeutics Inc (NASDAQ:APLT).
9. Fate Therapeutics Inc (NASDAQ:FATE)
Number of Hedge Fund Investors: 26
Fate Therapeutics Inc (NASDAQ:FATE)shares have gained about 104% year to date through February 19. In November Fate Therapeutics Inc (NASDAQ:FATE)posted third quarter results. GAAP EPS in the period came in at -$0.46, beating estimates by $0.12. Revenue came in at $1.94 million, beating estimates by $1.04 million.
As of the end of the fourth quarter of 2023, 26 hedge funds had stakes in Fate Therapeutics Inc (NASDAQ:FATE). The biggest stakeholder of Fate Therapeutics Inc (NASDAQ:FATE)during this period was Jeremy Green's Redmile Group which had a $49 million stake in Fate Therapeutics Inc (NASDAQ:FATE).
8. Edgewise Therapeutics Inc (NASDAQ:EWTX)
Number of Hedge Fund Investors: 26
Edgewise Therapeutics Inc (NASDAQ:EWTX) ranks eighth in our list of the best booming stocks to buy right now. The stock jumped in January after Edgewise Therapeutics Inc (NASDAQ:EWTX) priced its offering of 21.8 million shares at $11.00 apiece for gross proceeds of about $240 million.
As of the end of the fourth quarter of 2023, 26 hedge funds tracked by Insider Monkey had stakes in Edgewise Therapeutics Inc (NASDAQ:EWTX).
7. Kinsale Capital Group Inc (NYSE:KNSL)
Number of Hedge Fund Investors: 28
Specialty insurance company Kinsale Capital Group Inc (NYSE:KNSL)shares have gained about 45% year to date through February 19.
As of the end of the fourth quarter of 2023, 28 hedge funds had stakes in Kinsale Capital Group Inc (NYSE:KNSL). The biggest stake in Kinsale Capital Group Inc (NYSE:KNSL)is owned by Bradley Schatz's Maren Capital which owns a $46 million stake in Kinsale Capital Group Inc (NYSE:KNSL).
Carillon Eagle Small Cap Growth Fund stated the following regarding Kinsale Capital Group, Inc. (NYSE:KNSL) in its fourth quarter 2023 investor letter:
“Kinsale Capital Group, Inc.(NYSE:KNSL) is a specialty insurance company focused on the excess and surplus (E&S) market, serving customers with specialized coverage needs not covered by standard coverage policies. The company reported strong third-quarter results, but its gross written premiums fell short of consensus estimates. The stock retracted after a notably strong run in the previous quarter.”
6. Oscar Health Inc (NYSE:OSCR)
Number of Hedge Fund Investors: 31
Oscar Health Inc (NYSE:OSCR) ranks sixth in our list of the best booming stocks to buy right now. Earlier this month Oscar Health Inc (NYSE:OSCR) posted fourth quarter results. GAAP EPS in the period came in at -$0.66, beating estimates by $0.07. Revenue in the quarter jumped about 44% year over year to $1.43 billion, missing estimates by $30 million.
Unlike Microsoft Corp (NASDAQ:MSFT), Apple Inc (NASDAQ:AAPL) and Amazon.com Inc (NASDAQ:AMZN), Oscar is a small company that is seeing a rapid share price growth this year.
Longleaf Partners Small-Cap Fund made the following comment about Oscar Health, Inc. (NYSE:OSCR) in its Q3 2023 investor letter:
“Oscar Health, Inc. (NYSE:OSCR) – Health insurance and software platform Oscar Health was the top detractor in the quarter but remains the top performer for the year. Oscar declined in the quarter as venture capital investors that funded the business’ early days reduced their investment. However, nothing fundamentally changed or negatively impacted the value of the business, and Oscar reiterated guidance. CEO Mark Bertolini is focused on closing the significant price-to-value gap. We had trimmed our position in Oscar on the back of strong performance in the first half but added again in the quarter as price declined.”
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Disclosure: None.13 Best Booming Stocks to Buy Right Nowis originally published on Insider Monkey.
