Aristotle Capital Management, LLC, an investment management company, released its “Value Equity Strategy” second quarter 2024 investor letter. A copy of the letter can be downloaded here. US markets continued their trend in the second quarter and the S&P 500 Index rose 4.28%. “Magnificent 7” drove the rally once again. The composite returned -1.55% gross of fees (‐1.61% net of fees) in the second quarter outperforming the ‐2.17% return of the Russell 1000 Value Index and trailing the 4.28% return of the S&P 500 Index. Security selection led the composite to outperform in the quarter relative to the Russell 1000 Value Index, while allocation effects detracted. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Aristotle Capital Value Equity Strategy highlighted stocks like QUALCOMM Incorporated (NASDAQ:QCOM), in the second quarter 2024 investor letter. QUALCOMM Incorporated (NASDAQ:QCOM) develops and commercializes foundational technologies for the wireless industry. The one-month return of QUALCOMM Incorporated (NASDAQ:QCOM) was -4.14%, and its shares gained 69.59% of their value over the last 52 weeks. On July 10, 2024, QUALCOMM Incorporated (NASDAQ:QCOM) stock closed at $208.80 per share with a market capitalization of $233.021 billion.
Aristotle Capital Value Equity Strategy stated the following regarding QUALCOMM Incorporated (NASDAQ:QCOM) in its Q2 2024 investor letter:
“QUALCOMM Incorporated (NASDAQ:QCOM), a leading wireless communications technology company, was the largest contributor for the quarter. After a period of weaker global demand for smartphones (driven by a slowdown in China) and elevated channel inventory, demand from Chinese handset manufacturers accelerated 40% year‐over‐year. More importantly, in our opinion, Qualcomm continues to execute on a previously identified catalyst of shifting its business mix beyond smartphones. The company announced increased progress for its automotive and Internet of Things (IoT)solutions. Within auto, the increase in vehicle content has resulted in 35% year‐over‐year revenue growth, with a design win pipeline of ~$45 billion, keeping the company on track to achieving ~$4 billion in auto‐related revenues by 2026. In recent years, despite persistent threats of insourcing from large clients (most notably Apple), Qualcomm has been able to retain its high market share in handsets while simultaneously expanding in non‐smartphone devices. We believe this progress is a testament to Qualcomm’s history of high (and productive) R&D spending, resulting in technological superiority. We believe Qualcomm’s technologies will continue to benefit as the world stays on a path toward a proliferation of connectivity between varying devices and as AI applications extend from the cloud to on‐device.”
A technician testing the latest 5G device, demonstrating the company’s commitment to innovation.
QUALCOMM Incorporated (NASDAQ:QCOM) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 78 hedge fund portfolios held QUALCOMM Incorporated (NASDAQ:QCOM) at the end of the first quarter which was 78 in the previous quarter. QUALCOMM Incorporated (NASDAQ:QCOM) reported non-GAAP revenues of $9.4 billion in the fiscal second quarter of 2024 and non-GAAP earnings per share of $2.44. While we acknowledge the potential of QUALCOMM Incorporated (NASDAQ:QCOM) 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.
We discussed QUALCOMM Incorporated (NASDAQ:QCOM) in another article and shared the list of best undervalued stocks to buy along with the expert opinion on the future growth prospects of the US economy. 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.
