Roku Inc (ROKU) saw substantial growth over the past six months. The digital media and streaming pioneer recently slid on the WhaleWisdom Heatmap but saw hedge funds buying. Overall, Roku outperformed the S&P 500, rising by approximately 146.9% compared to the S&P’s gain of about 28.6% since the beginning of 2020.

Roku manufactures streaming media players and television-related audio devices, providing marketing services that allow advertisers to engage consumers. Roku offers access to streaming media content from various online services such as Netflix and Disney Plus. Roku’s television (TV) models are also available through licensing arrangements. Roku offers several free TV and movie channels, including its namesake, the Roku Channel. Roku continues to benefit from the accelerated consumer shift to streaming that occurred during the coronavirus pandemic. As coronavirus vaccinations increase and the economy continues to open, some investors are cautious of the impact on the streaming entertainment factor.

Mixed Results from Hedge Funds and Institutions

Hedge funds are buying, in contrast to institutions. Looking at first-quarter activity by the top hedge funds, the aggregate 13F shares held increased to about 21.8 million from 20.6 million, a change of approximately 5.8%. Of the hedge funds, 34 created new positions, 62 added to an existing holding, 26 exited, and 66 reduced their stakes. In contrast to hedge funds, institutions decreased their aggregate holdings by about 2.0% to approximately 80.1 million from 81.7 million. Roku dropped slightly on the WhaleWisdom Index to a ranking of 38 from 37.

(WhaleWisdom)

Revenue Estimates Are Encouraging

Analysts expect to see revenue growth from 2021 through 2022, rising to $3.8 billion by December 2022 from $2.7 billion in 2021. Earnings estimates are forecast to increase to $1.02 per share in 2022, up from a 2021 estimate of $0.37.

(WhaleWisdom)

Analysts Share Mixed Ratings

While most analysts appear to agree on Roku’s growth potential, price targets show movement in both directions. Evercore ISI analyst Shweta Khajuria raised Roku’s price target to $430 from $400 and kept an Outperform rating on shares. Khajuria noted that active Roku accounts increased, and various initiatives align with a three-year growth forecast. Meanwhile, Justin Patterson of KeyBlanc Capital Markets, Inc. lowered his firm’s price target on Roku to $460 from $518 while maintaining an Overweight rating on shares. Citigroup Inc. analyst Jason Bazinet also lowered the price target on Roku to $450 from $460 and kept a Buy rating.

Favorable Long-term Outlook

Roku’s impressive year-to-date growth is encouraging for investors. For as long as consumers continue to shift to streaming content instead of paying for traditional TV or view the Roku device as a convenient, centralized alternative to access channels they have already purchased, the company stands to see favorable returns. While Roku has experienced mixed ratings from investment firms, multi-year estimates speak to the stock’s long-term potential.

Intuitive Surgical Inc (ISRG)experienced strong growth over the past year, outperforming the S&P 500 and rising by approximately 39.6% compared to the S&P’s gain of about 28.6%. Hedge funds were actively buying the stock in the first quarter, and it reached a ranking of three on the WhaleWisdom Heat Map.

Intuitive Surgical develops, manufactures, and markets robotic products, systems, and other medical instruments to improve surgical outcomes. Intuitive’s da Vinci Surgical System was one of the first robotic-assisted, minimally invasive surgical systems. Its Ion endoluminal system offers a platform for minimally invasive lung biopsies. Intuitive Surgical has had steady growth over the past years as it continues to innovate and catch the attention of investors.

Hedge Funds Are Buying

Hedge Funds were actively buying the stock in the first quarter. The aggregate 13F shares held by hedge funds increased to approximately 21.67 million from 21.66 million, a mild increase of about 0.05%. Overall, 27 created new positions for hedge funds, 94 added to an existing holding, 17 exited, and 58 reduced their stakes. In contrast, Institutions decreased their aggregate holdings by about 2.8% to 98.8 million from 101.6 million.

(Whale Wisdom)

Favorable Estimates

Analysts expect to see revenue grow consistently from 2020 through to 2022, with estimates of approximately $5.3 billion by December 2021 and $6.1 billion by 2022. Earnings estimates are also optimistic, with year-over-year estimated increases that would bring earnings to $15.79 per share in 2022, up from $13.43 in 2021.

(Whale Wisdom)

Analysts Confidently Raise Targets

Analysts show enthusiasm for Intuitive Surgical by raising price targets. Lawrence Biegelsen from Wells Fargo Bank, N.A. raised Intuitive Surgical’s price target to an impressive $892 from $879 and kept an Overweight rating. SVB Leerink analyst Richard Newitter viewed the company as an asset in medical technology and raised its firm’s price target to $860 from $825, maintaining a Market Perform rating on the shares. Deutsche Bank raised the firm’s price target on Intuitive Surgical to $825 from $690, keeping a Hold rating on the shares. Baird & Co. analyst Mike Polark upgraded the shares to Outperform from Neutral and set a $925 price target. Polark referenced Intuitive Surgical’s innovation and recent shipment of close to 300 da Vinci Surgical Systems in the first quarter, a 26% increase from the prior-year period.

Bright Outlook

Intuitive Surgical’s impressive growth is encouraging for investors. This medical technology company continues to push forward as a leader in minimally invasive care and robotic-assisted surgery. Analysts’ enthusiastic price targets and multi-year estimates speak to the opportunity for investors.

Workday, Inc. (WDAY) has experienced soaring growth over the past year, outperforming the S&P 500 and rising by approximately 39.1% as of April 30, 2021, compared to the S&P’s gain of 29.2%. Hedge funds and institutions are actively buying. The stock moved up on the WhaleWisdom Heatmap to a ranking of 26 from 43.

Workday is a provider of on-demand enterprise cloud-based software. Workday specializes in human capital management (HCM), enterprise resource management (ERP), and financial management solutions. Consumer demand for the company’s applications has accelerated during the coronavirus pandemic. During the pandemic, many organizations felt a push to move critical functions such as procurement, payroll, and employee expense management to the cloud. Additionally, many workforces shifted to remote work, impacting talent management as employers placed more importance on the best fit for a position and less focus on talent location. Workday’s applications offer flexible solutions to address businesses’ changing needs.

Hedge Funds Are Buying

Workday’s performance has garnered the attention of hedge fund managers and institutions. Looking at activity by the top hedge funds in the fourth quarter, the aggregate 13F shares held increased to about 61.0 million from 59.4 million, an increase of approximately 2.8%. Of the hedge funds, 29 created new positions, 77 added to an existing holding, 30 exited, and 59 reduced their stakes. With aggregate holdings increasing by about 2.4% to approximately 166.5 million from 162.6 million, institutions were also buying.

(WhaleWisdom)

Encouraging Estimates

Analysts expect to see revenue rise over the next two years for this enterprise cloud applications company, with increases in growth from 2022 to 2023 that could bring earnings to $2.81 by January 2022 and $3.49 by January 2023. This prediction for strong growth could bring revenue to $4.99 billion in 2022 and then continue to rise to approximately $5.9 billion in 2023.

(WhaleWisdom)

Favorable Ratings

Investment firms are optimistic about the stock, raising ratings, and recognizing future growth opportunities. JMP Securities analyst Patrick Walravens raised Workday’s price target to $310 from $296, maintaining an Outperform rating on shares. Also, Alex Zukin of Wolfe Research initiated coverage on Workday with an Outperform rating and $300 price target. The analyst cited opportunities for near-term acceleration and long-term durable growth potential.

Positive Outlook

Workday’s optimistic future estimates and hedge funds that are buying are encouraging metrics for investors. The company has shown strong growth over the past year amidst the pandemic. This leader in enterprise cloud applications appears well-positioned to meet changing customer needs.

Dollar Tree Inc. (DLTR) has seen steady growth over the past year, with the stock rising by about 23%. The company was added to the WhaleWisdom Whale Index on February 18, 2021. While Dollar Tree underperformed the S&P 500’s gain of approximately 30.0%, the stock continues to rise.

Dollar Tree operates discount variety stores across North America under the names of Dollar Tree, Family Dollar, and Dollar Tree Canada. Dollar Tree’s stores offer an assortment of merchandise at the base price of one dollar, from seasonal decorative items to everyday groceries. Understandably, the company had a boost in its appeal at the start of the coronavirus pandemic. The retailer’s grocery inventory initially allowed it to remain open as an essential store during a time when many retailers were forced to close doors amidst government pandemic orders. Even when other retailers could reopen their doors, Dollar Tree still benefited by being affordable and maintained its elevated appeal across multiple consumer income brackets. The company met changing consumer needs when many faced reduced incomes, often combined with job losses as the pandemic continued.

(WhaleWisdom)

Mixed Results from Hedge Funds and Institutions

Looking at fourth-quarter activity by hedge funds, the aggregate 13F shares held decreased to about 49.2 million from 51.0 million, a decrease of approximately 3.5%. Of the hedge funds, 33 created new positions, 61 added to an existing holding, 23 closed out their position, and 53 reduced their stake. In contrast to hedge funds, institutions were buying, though at a slow rate. Overall, institutions increased their aggregate holdings by about 0.1% to approximately 209.4 million from 209.2 million.

Positive Estimates

Analysts expect to see a positive trend continue through to 2023, with estimated year-over-year revenue growth of approximately $27.6 billion by January 2023, up from $26.3 billion in 2022. These year-over-year estimated increases could bring earnings per share to $6.92 by 2023, up from its predicted value of $6.16 in 2022.

(WhaleWisdom)

Strategic Partnerships and Increased Demand Bring Optimism

Recently, the retailer announced the launch of a retail media network called Chesapeake Media Group. Dollar Tree established partnerships with Swiftly Systems and Aki Technologies to support this endeavor, with Swiftly supporting digital media placements and Aki providing personalized advertising across various forms of media.

While proposed federal minimum wage increases have the potential to impact Dollar Tree’s profit margin, they do not appear to outweigh increased consumer demand. However, even with an underperform rating, Dollar Tree made Bank of America Corp.’s high-conviction list an encouraging designation.

Fair Outlook

Dollar Tree’s growth remains slow and steady as demand continues to rise for this affordable retailer. Investors may be encouraged by future earnings estimates and the opportunities that Dollar Tree’s new retail media network offer.

CrowdStrike Holdings, Inc. (CRWD) continues its forward momentum, significantly outperforming the S&P 500. The cybersecurity technology company’s stock rose by approximately 318.1% as of April 30, 2021, compared to the S&P’s gain of about 30.4% since the start of 2020. CrowdStrike also impressively climbed the WhaleWisdom Heatmap to a ranking of 5, up from 30.

CrowdStrike provides cloud-based workload and endpoint security for its customers, including services such as threat intelligence and cyberattack response. American businesses have experienced a push toward remote work and online collaboration during the Coronavirus pandemic. They have seen more applications moving to the cloud, contributing to a growing demand for CrowdStrike’s services.

Hedge Funds Are Buying

Fourth-quarter results showed that the aggregate 13F shares held by hedge funds increased to about 54.1 million from 49.9 million, an increase of approximately 8.5%. Hedge funds created 48 new positions, 88 funds added to an existing holding, 17 exited, and 50 reduced their stakes. Institutions were also buying the stock and aggregate holdings increased by about 7.6% to approximately 142.8 million from 132.7 million.

(WhaleWisdom)

Positive Multi-year Estimates

Analysts predict earnings per share will rise in the coming years, increasing to $0.63 by 2023, up from $0.29 in 2022. Strong performance is anticipated to bring revenue to approximately $1.8 billion by 2023, up from $1.3 billion in 2022.

(WhaleWisdom)

Analysts Are Bullish

Analysts are predominantly bullish on the stock, with most rating CrowdStrike a Buy. Berenberg Capital Markets analyst Joshua Tilton initiated coverage of CrowdStrike with a Buy rating and a price target of $260. Tilton cited the company’s superior technology and meaningful market opportunities. Similarly, Deutsche Bank analyst Patrick Colville gave CrowdStrike a Buy rating and a $265 price target, noting the rising rate of cloud adoption and the importance of cybersecurity.

While not all analysts raised price targets, they all appear to see CrowdStrike’s opportunities for continued market growth. JMP Securities analyst Erik Suppiger maintained an Outperform rating on the shares but lowered CrowdStrike’s price target to $265 from $295. While Suppiger acknowledged CrowdStrike’s momentum and business expansion opportunities beyond the endpoint security market, his price target adjustment reflected recent compression in valuation multiples across the market. Sterling Auty from JPMorgan Chase & Co maintained a Neutral rating on CrowdStrike’s shares but raised the firm’s price target to $210 from $205. Auty referenced cloud market opportunities and the company’s strategic decision to partner with Amazon Web Services Marketplace.

Great Expectations

CrowdStrike continues to see growth and receives favorable feedback from analysts, many of whom view the company as a Buy with excellent market potential. The company is understandably closely followed by technology investors; it addresses the demand for protection against increasing cyber threats and has made strategic moves to expand its reach to consumers. Hedge funds are buying, and future estimates for 2022 and 2023 should be encouraging for investors.