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 Perrigo Company plc (NYSE:PRGO), in the second quarter 2024 investor letter. Perrigo Company plc (NYSE:PRGO) offers over-the-counter health and wellness solutions. The one-month return of Perrigo Company plc (NYSE:PRGO) was 8.40%, and its shares lost 21.96% of their value over the last 52 weeks. On July 22, 2024, Perrigo Company plc (NYSE:PRGO) stock closed at $27.75 per share with a market capitalization of $3.783 billion.
O’keefe Stevens Advisory stated the following regarding Perrigo Company plc (NYSE:PRGO) in its Q2 2024 investor letter:
“We initiated two new positions during the quarter: Alibaba(BABA) and Perrigo Company plc (NYSE:PRGO). Both have seen their stocks decline over 70%+ from their all-time highs.
Perrigo offers over-the-counter (OTC) self-care and wellness solutions in the U.S. and internationally. In the U.S., the company primarily focuses on store brand products, whereas Perrigo markets its own brand internationally. The Consumer Self-Care Americas (U.S. business) represents ~2/3 of sales, with most revenue generated through store-branded products at retailers including Target, Walmart, and CVS. Products include pain relief, sleep aids, upper respiratory relief, and digestive health. Consumer Self-Care International (International business) represents ~1/3 of revenue concentrated in Europe. 90% of sales stem from Perrigo’s branded products, pain and sleep aid brands Solpadeine and Nytol, upper respiratory – Aflubin, and Physiomer.
Over the past several years, Perrigo experienced significant management missteps and regulatory changes. Investors have seen nothing but a downward trending business and stock price over the past nine years. Fatigue has set in. However, significant business developments, management changes, and new market opportunities, combined with an undemanding multiple and growth acceleration, have us encouraged that the future is unlike the recent past…” (Click here to read the full text)
A doctor and a patient discussing the benefits of OTC health and wellness solutions.
Perrigo Company plc (NYSE:PRGO) is not on our list of 31 Most Popular Stocks Among Hedge Funds. Perrigo Company plc (NYSE:PRGO) was held by 38 hedge fund portfolios at the end of the first quarter, compared to 41 in the previous quarter, according to our database. Perrigo Company plc (NYSE:PRGO) reported an EPS of $0.29 in Q1, beating expectations, but was down $0.16 from Q1 2023. While we acknowledge the potential of Perrigo Company plc (NYSE:PRGO) 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 Perrigo Company plc (NYSE:PRGO) and shared Heartland Mid Cap Value Fund’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.
