1) SharkNinja, Inc. (NYSE:SN)
Number of Hedge Fund Holders: 56
SharkNinja, Inc. (NYSE:SN), which became a publicly traded company on 31st July 2023, is a leading global consumer goods company specializing in innovative household products.
SharkNinja, Inc. (NYSE:SN) has been strategically leveraging new category entries and international expansion to fuel its growth. In 2024, the company introduced 25 innovative products, venturing into new market segments like skincare with the Shark CryoGlow facemask in the UK and Mexico, and rolling out products such as Ninja Slushi Professional Frozen Drink Maker and the Ninja Luxe Cafe at-home espresso and coffee maker. These expansions should continue to contribute to significant financial growth.
Let’s talk about international expansion now. SharkNinja, Inc. (NYSE:SN) expanded into the Middle East, Mexico, and Brazil. This international growth is aided by strong relationships with key retailers and local expertise, allowing the company to effectively penetrate new markets and cater to regional consumer preferences.
Therefore, by continuously innovating and expanding its product portfolio, alongside strategic international market entries, SharkNinja, Inc. (NYSE:SN) is well-positioned to sustain its growth trajectory.
Artisan Partners sees material upside to SharkNinja, Inc. (NYSE:SN)’s stock on the back of new category entries and international expansion. Here’s what the firm said in its Q3 2024 investor letter:
“Among our top Q3 contributors were Guidewire, Veracyte and SharkNinja, Inc. (NYSE:SN). SharkNinja is a leading household consumer products company. Its Shark brand focuses on the cleaning category (vacuums, mops, carpet cleaners, etc.) and, more recently, beauty (hair dryers, hair stylers, etc.). Its Ninja brand focuses on food preparation (blenders, food processors, ice cream makers, juicers, etc.) and cooking (indoor grills, ovens, toasters, cookers, air fryers, etc.). We believe a healthy combination of market share gains within existing categories, new category entries and international expansion will drive growth. Shares rallied after reporting strong earnings results, including 31% revenue growth and 600bps of gross margin expansion.”
While we acknowledge the potential of SN as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than SN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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