Coherent Corp. (COHR) is Benefitting From AI

Invesco Distributors, Inc., an investment management firm, released its “Invesco Small Cap Value Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund underperformed the benchmark due to stock selection and an overweight in industrials. A lack of exposure to real estate also detracted from relative performance. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.

Invesco Small Cap Value Fund highlighted stocks like Coherent Corp. (NYSE:COHR) in the third quarter 2024 investor letter. Coherent Corp. (NYSE:COHR) manufactures and distributes engineered materials and optoelectronic components and devices. The one-month return of Coherent Corp. (NYSE:COHR) was -7.94%, and its shares gained 7.94% of their value over the last 52 weeks. On December 18, 2024, Coherent Corp. (NYSE:COHR) stock closed at $97.33 per share with a market capitalization of $15.053 billion.

Invesco Small Cap Value Fund stated the following regarding Coherent Corp. (NYSE:COHR) in its Q3 2024 investor letter:

“Coherent Corp. (NYSE:COHR): This laser company develops and manufactures optoelectronic components and devices used in the communications, electronics and industrial markets. The company has been benefiting from growing awareness of an improved growth outlook driven by artificial intelligence (AI), given that its optical transceivers are key enablers for networking of AI servers.”

A row of precision industrial lasers in action, cutting the most intricate of shapes.

Coherent Corp. (NYSE:COHR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held Coherent Corp. (NYSE:COHR) at the end of the third quarter which was 47 in the previous quarter. Coherent Corp.’s (NYSE:COHR) revenue reached 1.35 billion in the September quarter, up 28% from the previous year and 3% sequentially. While we acknowledge the potential of Coherent Corp. (NYSE:COHR) 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 Coherent Corp. (NYSE:COHR) and shared the list of stock picks of billionaire Stanley Druckenmiller. In addition, please check out our hedge fund investor letters Q3 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.