Nestlé S.A. (NSRGY) Disappointed On Net Pricing

American Century Investments, an investment management company, released its “International Growth Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. Despite periods of volatility, equity markets held steady and ended the quarter higher as interest rates were lowered by central banks. Small-cap stocks outperformed large caps, and value narrowly performed better than growth. As anticipated, the multiyear pattern of value outperformance seems to be slowing down as global inflation declines. In addition, please check the fund’s top five holdings to know its best picks in 2024.

American Century Investments International Growth Fund highlighted stocks like Nestlé S.A. (OTC:NSRGY) in the third quarter 2024 investor letter. Nestlé S.A. (OTC:NSRGY) is a food and beverage company that offers baby foods, bottled water, cereals and chocolate and confectionery products. The one-month return of Nestlé S.A. (OTC:NSRGY) was -5.02%, and its shares lost 28.85% of their value over the last 52 weeks. On December 30, 2024, Nestlé S.A. (OTC:NSRGY) stock closed at $82.28 per share with a market capitalization of $213.479 billion.

American Century Investments International Growth Fund stated the following regarding Nestlé S.A. (OTC:NSRGY) in its Q3 2024 investor letter:

“Nestlé S.A. (OTC:NSRGY): Although volume acceleration occurred as we expected, the company disappointed on net pricing, indicating that volume growth was achieved through significant pricing weakness. In our opinion, the management team lost credibility in its ability to revive the organic growth profile of Nestle, and we exited the position.”

A filled shopping cart with popular food and beverage items.

Nestlé S.A. (OTC:NSRGY) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 4 hedge fund portfolios held Nestlé S.A. (OTC:NSRGY) at the end of the third quarter which was 4 in the previous quarter. While we acknowledge the potential of Nestlé S.A. (OTC:NSRGY) 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 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.