Parnassus Investments, an investment management company, released the “Parnassus Value Equity Fund” first quarter 2024 investor letter. A copy of the letter can be downloaded here. In the first quarter, the Fund (Investor Shares) appreciated 10.17% outperforming the Russell 1000 Value Index’s 8.99%. Stock selection in the Information Technology and Communication Services sectors was the main contributor to the fund’s performance in the first quarter. Overweight in Financials and underweight in Real Estate also contributed. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Parnassus Value Equity Fund highlighted stocks like NICE Ltd. (NASDAQ:NICE), in the first quarter 2024 investor letter. NICE Ltd. (NASDAQ:NICE) is a cloud platform provider for AI-driven digital business solutions. The one-month return of NICE Ltd. (NASDAQ:NICE) was -3.59%, and its shares lost 14.87% of their value over the last 52 weeks. On June 28, 2024, NICE Ltd. (NASDAQ:NICE) stock closed at $171.97 per share with a market capitalization of $10.913 billion.
Parnassus Value Equity Fund stated the following regarding NICE Ltd. (NASDAQ:NICE) in its first quarter 2024 investor letter:
“During the quarter, we added new positions in Pfizer, NICE Ltd. (NASDAQ:NICE) and Charter Communications. NICE is a leading cloud contact center software company. We believe its customers will increasingly adopt AI-enabled customer experience software, driving double-digit revenue growth. NICE has a strong moat with leadership in contact center software. Its stock was significantly down from its 2021 peak due to softening demand post-pandemic. However, the stock has sizable upside potential as enterprises continue to embrace AI and cloud-based solutions.”
A data scientist sitting in front of a monitor to review the performance of AI-driven digital business solutions.
NICE Ltd. (NASDAQ:NICE) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held NICE Ltd. (NASDAQ:NICE) at the end of the first quarter which was 26 in the previous quarter. In the first quarter of 2024, NICE Ltd. (NASDAQ:NICE) reported $659 million in total revenues, which reflects the high end of the guidance range and represents a 15% increase from Q1 2023.While we acknowledge the potential of NICE Ltd. (NASDAQ:NICE) 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 NICE Ltd. (NASDAQ:NICE) in another article and shared TimesSquare Capital U.S. Mid Cap Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q1 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.
