1. Sharkninja Inc. (NYSE:SN)
TTM Net Income: $245.7 million
Number of Hedge Fund Holders: 52
Sharkninja Inc. (NYSE:SN) is a leading manufacturer of innovative home appliances, including vacuum cleaners, robot vacuums, and kitchen appliances. It’s known for its high-quality products and innovative features. The products are designed to make household chores easier and more efficient.
The company’s strategic diversification into new product categories, like the Ninja SLUSHi and Shark FlexBreeze, has been well-received by consumers. The Ninja SLUSHi set a record as the fastest-selling new product on Sharkninja Inc.’s (NYSE:SN) D2C platform. It has also made strides in expanding its market share and diversifying its product offerings. In 2024, it ventured into 3 new subcategories, bringing its total to 34.
Sales increased 31% in Q1 2024, while earnings per share rose 34%. Food preparation appliances grew by 80%, cooking and beverage appliances grew by 18.2%, and cleaning grew by 20%. Domestic business surged 35%, and international business rose 46%, primarily due to Germany and France. The company’s international operations, particularly in EMEA, are experiencing substantial growth. There are promising prospects in Latin America, including upcoming launches in Brazil.
Sharkninja Inc. (NYSE:SN) is well-positioned for continued growth due to its innovative products, strong brand recognition, and expanding market presence. Its latest launch was on October 1, when Shark Beauty launched new multi-stylers, Shark FlexFusion and Shark FlexFusion Straight. The company’s strategic diversification, successful product launches, and solid financial performance demonstrate its ability to capitalize on market opportunities and drive long-term growth.
Ave Maria World Equity Fund stated the following regarding SharkNinja, Inc. (NYSE:SN) in its Q2 2024 investor letter:
“Top contributors to performance included SharkNinja, Inc. (NYSE:SN) and Taiwan Semiconductor Manufacturing Company Limited. SharkNinja, Inc. is a global product design and technology company focused on creating solutions that increase efficiency, convenience and enjoyment of consumers’ daily tasks and improve everyday lives. The company has built two billion-dollar brands, Shark and Ninja, and has a proven track record of establishing leadership positions by disrupting numerous household product categories, including cleaning, cooking, food preparation, home entertainment and beauty.”
While we acknowledge the growth potential of Sharkninja Inc. (NYSE:SN), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an 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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