Can AAON (AAON) Reach 20% Market Share?

Next Century Growth Investors, LLC, an investment Management Company, released its “Small Cap Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. The equities market in 2024 saw mixed results in the second quarter. Small-cap indices generally posted negative results, whereas large-cap indices posted favorable results. The strategy returned (3.32)% net of fees in the quarter, compared to a (2.91)% return for the Russell 2000 Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2024.

NCG Small Cap Strategy highlighted stocks like AAON, Inc. (NASDAQ:AAON), in the second quarter 2024 investor letter. AAON, Inc. (NASDAQ:AAON), with a market capitalization of $7.591 billion, engages in engineering, manufacturing, marketing, and selling air conditioning and heating equipment. One-month return of AAON, Inc. (NASDAQ:AAON) was 7.81%, and its shares gained 48.59% of their value over the last 52 weeks. On August 29, 2024, AAON, Inc. (NASDAQ:AAON) stock closed at $93.70 per share.

NCG Small Cap Strategy stated the following regarding AAON, Inc. (NASDAQ:AAON) in its Q2 2024 investor letter:

“AAON, Inc. (NASDAQ:AAON) is a leading provider of premium HVAC (heating, ventilation, air conditioning) equipment for commercial rooftops. The company has benefitted from strong demand in K-12, manufacturing, healthcare, and data centers, among others, and there are regulatory and end market drivers that should sustain demand. AAON has grown market share from 3% to 12% over the last 7-8 years, and the company believes it can eventually reach 20% plus.”

A technician surrounded by complex chillers and data center cooling solutions.

AAON, Inc. (NASDAQ:AAON) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held AAON, Inc. (NASDAQ:AAON) at the end of the second quarter which was 20 in the previous quarter. The second quarter net sales of AAON, Inc. (NASDAQ:AAON) increased to $313.6 million from $284 million in Q2 2023. While we acknowledge the potential of AAON, Inc. (NASDAQ:AAON) 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 as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed AAON, Inc. (NASDAQ:AAON) and shared Polen U.S. SMID Company Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.

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