Wasatch Global Investors, an asset management company, released its “Wasatch Micro-Cap Growth-U.S. Strategy” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter, U.S.-based micro-cap companies benefited from optimism surrounding decreasing interest rates and a smooth economic transition, which led to greater investor appetite for risk. The strategy appreciated and outperformed the benchmark Russell Microcap® Growth Index in the quarter, which returned 8.57%. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Wasatch Micro-Cap Growth-U.S. Strategy highlighted stocks like The Pennant Group, Inc. (NASDAQ:PNTG), in the third quarter 2024 investor letter. The Pennant Group, Inc. (NASDAQ:PNTG) is a healthcare services provider. The one-month return of The Pennant Group, Inc. (NASDAQ:PNTG) was -11.56%, and its shares gained 72.38% of their value over the last 52 weeks. On January 2, 2025, The Pennant Group, Inc. (NASDAQ:PNTG) stock closed at $26.46 per share with a market capitalization of $908.859 million.
Wasatch Micro-Cap Growth-U.S. Strategy stated the following regarding The Pennant Group, Inc. (NASDAQ:PNTG) in its Q3 2024 investor letter:
“The top contributor to strategy performance for the quarter was The Pennant Group, Inc. (NASDAQ:PNTG), a leading provider of health-care services to home-health, hospice and senior-living providers across much of the western U.S. Pennant, along with other health-care providers, underperformed coming out of Covid. During that time, we held our position in the company, as we hoped to see a turnaround in the company’s business fundamentals—a turnaround which has now begun to take place. We were pleased to see Pennant’s earnings accelerating as its business operations get back on track, providing capital the company will be able to allocate toward acquisitions, which we expect to be a driver of growth going forward.”
A nurse in scrubs, smiling while caring for a patient in a home health setting.
The Pennant Group, Inc. (NASDAQ:PNTG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held The Pennant Group, Inc. (NASDAQ:PNTG) at the end of the third quarter which was 21 in the previous quarter. The Pennant Group, Inc. (NASDAQ:PNTG) reported consolidated revenue of $180.7 million in the third quarter 2024, which marks an increase 28.9% compared to Q3 2023.While we acknowledge the potential of The Pennant Group, Inc. (NASDAQ:PNTG) 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 The Pennant Group, Inc. (NASDAQ:PNTG) and shared Wasatch Micro Cap Growth—U.S. Strategy’s views on the company in the previous quarter. 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.
