1. Lineage, Inc. (NASDAQ:LINE)
Number of Hedge Fund Holders In Q3 2024: 35
Lineage, Inc. (NASDAQ:LINE) is a specialty real estate investment trust that caters to the food and beverage industry. Consequently, the firm’s hypothesis depends on consumer spending in the economy. This makes it unsurprising that Lineage, Inc. (NASDAQ:LINE)’s shares are down 22.5% year-to-date as a slowdown in consumer spending has led to an inventory minimization in the food industry. This means that Lineage, Inc. (NASDAQ:LINE) earns less from its properties as food companies wait for spending to pick up before stocking in anticipation. The tough market has forced management into a defensive mode, as Lineage, Inc. (NASDAQ:LINE) now expects to grow its single-store net operating income in mid-single digits through cost control. On a broader note, the firm’s considerable size as evidenced by a presence in 19 countries and a 33% market share positions it well for any economic recovery.
Lineage, Inc. (NASDAQ:LINE)’s management shared their economic outlook during the Q3 2024 earnings call. Here is what they said:
“Notably, we continue to successfully navigate market headwinds driven by customer inventory rationalization, high interest rates and pressures from inflation limiting consumer demand as food prices remain elevated.
We have seen limited seasonal lift as occupancy levels remain steady, but below last year. In select markets, we are seeing some competitive pressures as speculative development and new supplies come online. Despite these industry headwinds, we are well positioned to win given our number one market position, technology investments, long term relationships with over 13,000 customers, leadership and automation, network effects, our global farm-to-fork service offerings and our strong balance sheet. To that end, we believe we remain the acquirer of choice in the industry, ideally poised to take advantage of market opportunities. As demonstrated in the quarter, we controlled the controllables and we’re able to deliver strong financial performance, further demonstrating our ability to perform well in various economic environments.”
LINE is an all-time low stock that hedge funds haven’t shunned. While we acknowledge the potential of LINE as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than LINE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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