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Is Eargo (EAR) Stock a Buy For 2021?

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Alex Smith
·3 min read
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Baron Discovery Fund recently published its fourth-quarter commentary – a copy of which can be downloaded here. During the fourth quarter of 2020, the Baron Discovery Fund returned 25.54% (institutional shares). This was 4.07% lower than the Russell 2000 Growth Index, the Fund’s primary benchmark index. You should check out Baron Discovery Fund’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.

In the Q4 2020 Investor Letter, Baron Discovery Fund highlighted a few stocks and Eargo Inc. (NASDAQ:EAR) is one of them. Eargo Inc. (NASDAQ:EAR) is a hearing aid manufacturer. In the last three months, Eargo Inc. (NASDAQ:EAR) stock gained 78.5% and on February 2nd it had a closing price of $60.09. Here is what Baron Discovery Fund said:

"Eargo, Inc. offers a next-generation hearing aid that is well positioned to penetrate an initial addressable market of over $30 billion. The hearing aid market has historically seen difficulty with consumer adoption due to social stigma, cost, and accessibility. Eargo is aiming to disrupt the industry with a hearing aid that is virtually invisible, affordable, and delivered through a telecare-based, direct-to-consumer model. We believe Eargo has a strong growth story with multiple levers including new product launches, the continued diversification from cash-pay into insurance markets, and the opportunity to drive repeat purchases among a growing installed base."

Andrey_Popov/Shutterstock.com

Our calculations showed that Eargo Inc. (NASDAQ:EAR) isn't ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds' poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:

Disclosure: None. This article is originally published at Insider Monkey.