Should You Consider Adding Texas Roadhouse (TXRH) to Your Portfolio?

Baird Equity Asset Management, an investment management company, released its “Baird Mid Cap Growth Equity Strategy” second quarter 2024 investor letter. A copy of the letter can be downloaded here. The strategy returned -8.9%, net of fees, in the second quarter, compared to the Russell Midcap Growth’s -3.2% decline. It was a challenging quarter due to portfolio positioning and ongoing benchmark factor headwinds, which negatively impacted the relative performance of the strategy in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Baird Mid Cap Growth Equity Strategy highlighted stocks like Texas Roadhouse, Inc. (NASDAQ:TXRH) in the second quarter 2024 investor letter. Texas Roadhouse, Inc. (NASDAQ:TXRH) operates and franchises casual dining restaurants. The one-month return of Texas Roadhouse, Inc. (NASDAQ:TXRH) was 5.68%, and its shares gained 86.46% of their value over the last 52 weeks. On September 25, 2024, Texas Roadhouse, Inc. (NASDAQ:TXRH) stock closed at $177.13 per share with a market capitalization of $11.882 billion.

Baird Mid Cap Growth Equity Strategy stated the following regarding Texas Roadhouse, Inc. (NASDAQ:TXRH) in its Q2 2024 investor letter:

“Adjustments made to our consumer discretionary exposure include the addition of two new positions, Texas Roadhouse, Inc. (NASDAQ:TXRH) and Dutch Bros—both restaurants. Texas Roadhouse is a full-service casual dining chain with a long history of consistent sales and profit growth and above-average returns. We believe recent inflationary pressures across the restaurant space have broadened Texas Roadhouse’s competitive positioning.”

View of kitchen staff working together to deliver an extraordinary dining experience.

Texas Roadhouse, Inc. (NASDAQ:TXRH) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held Texas Roadhouse, Inc. (NASDAQ:TXRH) at the end of the second quarter which was 44 in the previous quarter. In the second quarter, Texas Roadhouse, Inc. (NASDAQ:TXRH) experienced a 14.5% increase in revenue, propelled by an 8.5% rise in average unit volume and a 5.6% growth in store weeks. While we acknowledge the potential of Texas Roadhouse, Inc. (NASDAQ:TXRH) 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 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.