PayPal Holdings, Inc. (PYPL) saw continued growth as it transitioned from 2020 to 2021, significantly outperforming the S&P 500 as of March 2021 and rising by approximately 120.4% compared to the S&P’s gain of about 21.2%. Institutions were actively buying the stock in the fourth quarter. This global company climbed the WhaleWisdom Heat Map to a ranking of 17 from 34.

PayPal operates a digital payment system that makes commerce more convenient and secure for small businesses and consumers. PayPal also owns Venmo, a popular U.S.-based application that allows users to send and receive funds from friends and contacts without fees. The appeal of secure, convenient online money transfer apps and flexible payment options have skyrocketed throughout the pandemic.

Hedge Funds Sell Despite Growth

PayPal received mixed responses from Hedge Funds and Institutions. While Hedge Funds were selling, some Institutions added the stock to their portfolios. The aggregate 13F shares held increased to approximately 968.7 million from 968.3 million, growing about 0.04%. In contrast, Hedge Funds decreased their holdings by about 5.3% to 214.5 million. Overall, 46 hedge funds created new positions, 174 added to existing holdings, 47 exited, and 196 reduced their stakes.

(WhaleWisdom)

Encouraging Multi-year Estimates

Analysts expect to see earnings rise over the next four years, with increases in growth from 2021 to 2024 spanning from approximately 17.5% to 26.0%. These year-over-year estimated increases could bring earnings to $8.88 per share in 2024, up from $4.56 for 2021. Revenue predictions are also noteworthy, with revenue expected to increase to $44.6 billion by 2024, up from $25.7 billion.

(WhaleWisdom)

Analysts Are Feeling Positive

Analysts have good things to say about the stock as price targets were raised amid PayPal’s strong performance and potential. BTIG analyst Mark Palmer maintained a Buy rating on PayPal’s shares and increased its price target to $345 from $300. Fahed Kunwar from Redburn Ltd. Also gave PayPal a Buy rating, citing its powerful brand and the expanded customer revenue stream from its acquisition of Venmo. Susquehanna International Group analyst James Friedman gave the stock a positive rating and price target of $330, noting that the company has a new cryptocurrency payment strategy with a good chance of success.

Favorable Outlook

PayPal continues to weather the pandemic and maintain positive momentum. The company has been a notable player in the payment service business. Its flexible, secure payment options remain in high demand. Investors have good reason to acquire shares given motivating estimates from analysts and the potential for continued growth.

Qualcomm, Inc. (QCOM) has struggled more recently. Still, since the beginning of 2020, it has outperformed the S&P 500, rising by approximately 49.3% compared to the S&P’s gain of about 21.9%. Hedge funds and institutions actively bought the stock in the fourth quarter. The technology company was added to the WhaleWisdom Whale 100 Index on February 18, 2021.

Qualcomm is a multinational wireless technology company that creates semiconductors, intellectual property, software and offers wireless related services. The company was a driving force behind the development and expansion of 5G for mobile phones. Its subsidiary, Qualcomm Technologies, Inc., is known for its research and development functions and robust patent portfolio that includes patents critical to mobile communications standards. Despite the negative impact of the coronavirus pandemic on many businesses, Qualcomm has benefited from the strong demand for 5G network infrastructure and devices. The pandemic has shifted consumer habits and practices to work remotely more and less in-person socializing. While advances in technology have enabled companies and individuals to adapt quickly, the need and desire to stay connected continues to grow.

Hedge Funds Are Buying

Both Hedge funds and institutions are buying Qualcomm stock. Reviewing the top hedge funds’ fourth-quarter activity, the aggregate 13F shares held increased to about 153.3 million from 151.6 million, an increase of approximately 1.1%. Of the hedge funds, 38 created new positions, 128 added to existing holdings, 39 exited, and 160 reduced their position. Overall, institutions increased their aggregate holdings by about 1.0%, to approximately 856.5 million from 848.0 million.

(Whale Wisdom)

Multi-year Estimates Offer Encouragement

Analysts expect to see earnings rise over the next two years, with increases in year-over-year growth of 75.9% and 11.1% in 2021 and 2022, respectively, to $8.01 from $7.37. Revenue is estimated to increase year-over-year from 2021 until 2024 to $34.2 billion in 2024 from $31.1 billion.

(Whale Wisdom)

Positive Outlook Despite Production Challenges

Piper Sandler Co.’s analyst, Harsh Kumar, is bullish on the stock, raising their rating from Neutral to Overweight and increasing the price target to $160 from $150. Kumar noted growth opportunities for Qualcomm’s handset devices and that Qualcomm was trading cheaply compared to other large/mega cap semiconductor companies. Reuters reported that the soaring demand for Qualcomm’s processor chips for smartphones has resulted in a shortage. Qualcomm appears to be temporarily struggling to meet higher than anticipated demand from Android smartphone makers, in part due to a lack of some subcomponents used in its chips. Qualcomm executives are promoting encouraging second-quarter sales forecasts in the range of $7.2 to $8 billion due to demand.

Future Holds Promise

While the coronavirus pandemic has been a hurdle, Qualcomm’s jumping forward with momentum as demand increases for its technology and services. As individual consumers, workforces, and governments realize that faster, reliable connectivity and streaming are increasingly critical during a global pandemic, Qualcomm faces the challenge of keeping up with demand. With primarily optimistic estimates from analysts, steady growth, and positive actions from hedge funds and institutions, the future is encouraging for investors.

TripAdvisor Inc. (TRIP) faced challenges in 2020 and early 2021 from the negative impact that the coronavirus pandemic has had on the travel and tourism industries. However, despite the rocky road traveled, TripAdvisor saw positive momentum in recent months, outperforming the S&P 500. Since the beginning of 2020, the stock has gained approximately 70.1% compared to the S&P’s gain of about 16.6%.

The online travel company is estimated to have the world’s largest travel site. It offers features to customers such as a mobile application and a website with comparison shopping and user-generated reviews to aid travelers in planning. TripAdvisor also enables consumers to make online hotel reservations, book transportation rentals and restaurant reservations, and reserve travel experiences. TripAdvisor also offers tools for businesses to customize their listings, respond to reviews, and track performance.

Much like its competitors, TripAdvisor has faced the stinging wrath of the coronavirus pandemic on business. Government travel restrictions, lockdowns, and stay-at-home advisories resulted in travel cancellations and delayed much of the public from making future vacation and business travel plans. Fortunately, TripAdvisor saw recent growth and appears to be climbing in a positive direction.

Hedge Funds Are Buying

Hedge funds were active in the fourth quarter. The aggregate 13F shares held rose to about 43.6 million from 43.4 million, a slight increase of approximately 0.4%. Reviewing hedge fund activity, 33 created new positions, 17 added to an existing stake, 14 exited, and 21 reduced their holdings. Institutions were also buying and increased their aggregate holdings by about 4.8%, to approximately 97.0 million from 92.5 million.

(WhaleWisdom)

Encouraging Multi-year Estimates

Analysts expect to see revenue rise over the next four years, with increases in growth from 2021 to 2024, bringing revenue up to $1.7 billion, up from an estimated $871.2 million in 2021. Year-over-year estimated increases could also bring earnings to $2.66 per share in 2024, up from $0.13 for 2021.

(WhaleWisdom)

Optimistic Analysts

Citigroup, Inc. is optimistic about TripAdvisor’s new Plus subscription product, as it could potentially bring in approximately $1 billion in revenue from subscriptions. The new paid subscription program offers individuals the chance to be members of the program, with access to unique travel benefits and discounts to improve their overall travel experience. As a result, Citigroup upgraded TripAdvisor’s rating to a Buy from Neutral and raised its price target to $62.

Truist Financial Corp. selected TripAdvisor as one of its top picks due to an expected rebound in leisure travel. While the pandemic is still a factor, the rising pace of coronavirus vaccine distribution is triggering a returning consumer appetite for travel.

Favorable Outlook

It appears that a promising future lies ahead for TripAdvisor, as the company emerges from the cloud of the pandemic and continues forward with positive momentum. With optimistic estimates from analysts and investment firms and ownership increases by institutions and hedge funds, other investors may be encouraged to acquire shares.

Tandem Diabetes Care, Inc. (TNDM) has traversed a rocky path in 2020 and early 2021. The diabetes equipment supplier has seen both growth and setbacks along the way and yet managed to climb to the impressive ranking of two on the WhaleWisdom HeatMap in the fourth quarter. Over the last few months, Tandem regained momentum, outperforming the S&P 500. Since the beginning of 2020, the stock has risen by approximately 59.4% compared to the S&P’s gain of about 18.5%.

Tandem is a medical device company that develops insulin pumps, insulin dosing systems, glucose monitoring software, and other products and services that improve individuals’ lives with diabetes. Tandem initially felt the sting at the start of the coronavirus pandemic in the spring of 2020. Government stay-at-home advisories, business closures, and general pandemic-induced fear by the public likely contributed to a temporary reduction in the volume of visits to doctors and delays in bringing Tandem’s products and services to new customers. Fortunately, about five months into the pandemic, the company’s business rebounded as medical visits started to return to normal levels and new customers began to try Tandem’s insulin pump therapy services.

Mixed Results from Hedge Funds and Institutions

Tandem seemed to fall out of favor with hedge funds. The fourth quarter aggregate 13F shares held decreased to about 14.9 million from 16.3 million, a decrease of approximately 8.6%. Of the hedge funds, 13 created new positions, 35 added to existing holdings, 21 exited, and 31 reduced their stakes. In contrast to hedge funds, institutions were buying. Overall, institutions increased their aggregate holdings by about 7.2%, to approximately 57.8 million from 54.0 million, helping to push Tandem on the HeatMap to 2 from 41.

(WhaleWisdom)

Encouraging Multi-Year Estimates

Analysts estimate that year-over-year revenue growth for 2021 will increase by about 22.4%, continuing with growth in the range of 17.7% to 24.9% over the next few years. Between 2021 and 2024, revenue could very likely grow from approximately $610.5 million to $1.1 billion.

Earnings per share are forecast at breakeven in 2021, followed by a surge in 2022 to $0.59. Analysts expect positive year-over-year growth for 2023 and 2024 at about 138.1% and 17.9%, respectively. These surges in growth could bring earnings per share to an estimated $1.66 by December 2024.

(WhaleWisdom)

Optimistic Analysts

Lake Street Capital Market’s analyst, Brooks O’Neil, took note of Tandem’s strong fourth-quarter results and raised its price target to $150 from $137. O’Neil’s enthusiasm about the stock is influenced by a great short and long-term outlook for Tandem’s role in addressing the diabetes epidemic. Worldwide increases in insulin pump shipments have contributed to Tandem beating Wall Street estimates for its fourth-quarter revenue.

Favorable Outlook

Tandem showed resiliency during the coronavirus pandemic. Despite its competition in the diabetic device market, it continues to build its customer base and deliver products and services that aid in the diabetes pandemic.

Analysts are bullish about the future, raising price targets as customer demand for diabetic devices remains strong. Tandem has regained some upward traction in recent months and holds promise beyond 2021 for patient investors.

Carvana Co. (CVNA) saw improved performance over the past ten months after a dip in February and March 2020 related to the coronavirus pandemic. Carvana outperformed the S&P 500, rising by approximately 221.6% compared to the S&P’s gain of about 21.8% since the end of 2019. This has helped to propel the stock up to number one on the Whale Wisdom Heat Map, from a previous rank of 24.

Carvana operates an online platform for buying used cars, serving customers throughout the United States. While car sales initially fell at the start of the pandemic as the country went into lockdown, the company has fortunately seen demand recover for its e-commerce style of automobile retail. Factors that may have contributed to Carvana’s strong growth are that many consumers want to spend more conservatively on automobiles when unemployment rates are high. New car inventories are low due to pandemic-related business shutdowns. Carvana offers touchless delivery options that align well with social distancing practices. Buyers don’t need to visit a used car lot, and vehicles are delivered to their homes with friendly return policies. It has worked in Carvana’s favor that transportation trends have temporarily shifted away from public transit during the pandemic and made driving vehicles more appealing. Government stimulus checks have also likely made it easier for consumers to make down payments on cars.

Hedge Funds and Institutions Are Buying

Carvana is enjoying positive actions by 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 40.6 million from 40.4 million, an increase of approximately 0.6%. Of the hedge funds, 40 created new positions, 33 added to existing holdings, 14 exited, and 41 reduced their stakes. With aggregate holdings increasing by about 4.5% to approximately 86.9 million from 83.2 million, institutions were also buying.

(WhaleWisdom)

Encouraging Multi-year Estimates

Analysts expect to see revenue rise over the next four years, with increases in growth from 2020 to 2023 spanning from approximately 36.3% to 48.3%. This prediction for strong growth could bring revenue to $15.1 billion in 2023, up from $5.4 billion in 2020. Year-over-year estimated increases could also bring earnings to $2.00 per share in 2023.

(WhaleWisdom)

Analysts See Growth Potential

Wells Fargo & Co. expects considerable growth for Carvana given the recent online auto evolution, and analyst Zachery Fadem sees the company as a leader in growth with continued potential. CFRA Research Co.’s analyst, Garrett Nelson, recently shared mixed views on the used car retailer, noting they have increased competition and don’t include money-making service operations or part sales as part of their business model, yet have an improving gross margin influenced by pandemic trends. CFRA raised its rating on Carvana to Hold from Sell.

Positive Outlook

Overall, there is a positive outlook for Carvana’s financial future. The company’s impressive growth and future revenue estimates appeal to many investors. While Carvana will have to contend with increased competition from other used car companies, they have great potential for increased revenue. Their business model has aligned well to changing shopping trends and priorities during the pandemic, leaving investors with strong motivations to acquire shares.