O’keefe Stevens Advisory, an investment advisory firm, released its second-quarter 2024 investor letter. A copy of the same can be downloaded here. Ongoing expectations of near-term rate reduction drove a 3.9% gain in the S&P 500, and companies like Nvidia led this. In the first half, Microsoft, Alphabet, Amazon, and Meta increased by more than 10%. Approximately 63% of the S&P 500’s first-half surge was driven by just five equities, with Nvidia accounting for almost half of that total. In addition, please check the fund’s top five holdings to know its best picks in 2024.
O’keefe Stevens Advisory highlighted stocks like Corning Incorporated (NYSE:GLW), in the second quarter 2024 investor letter. Corning Incorporated (NYSE:GLW) engages in display technologies, optical communications, environmental technologies, specialty materials, and life sciences businesses. The one-month return of Corning Incorporated (NYSE:GLW) was 11.42%, and its shares gained 30.32% of their value over the last 52 weeks. On July 22, 2024, Corning Incorporated (NYSE:GLW) stock closed at $44.31 per share with a market capitalization of $37.957 billion.
O’keefe Stevens Advisory stated the following regarding Corning Incorporated (NYSE:GLW) in its Q2 2024 investor letter:
“Corning Incorporated (NYSE:GLW), another long-time holding, announced Q2 results would come in better than anticipated due to outperformance in their optical connectivity products used for Generative AI. Corning has long been a disappointing investment; with leading-edge technology, it consistently underperforms expectations. Their “springboard” plan, which revolves around $3 billion of excess capacity, seems to be the first sign in a long time that they are ready for a surge in growth. Management has frequently discussed the potential for operating leverage in nearly every conference call, anticipating a return to normal business conditions. Margins should expand over the coming quarters, driving EPS growth. The $3B in incremental sales could be worth in excess of $900m in EBITDA.”
A technician wearing protective glasses installing optical fibers and cables.
Corning Incorporated (NYSE:GLW) is not on our list of 31 Most Popular Stocks Among Hedge Funds. Corning Incorporated (NYSE:GLW) was held by 31 hedge fund portfolios at the end of the first quarter, compared to 37 in the previous quarter, according to our database. Corning Incorporated (NYSE:GLW) reported first-quarter sales of $3.26 billion and an EPS of $0.38, which was at the high end of their guidance. While we acknowledge the potential of Corning Incorporated (NYSE:GLW) 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 Corning Incorporated (NYSE:GLW) and shared the list of stocks to avoid according to Jim Cramer. 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.
