Ariel Investments, an investment management company, released its “Ariel Appreciation Fund” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, all the major U.S. indices posted gains. The Ariel Appreciation fund rose +9.90% in the quarter, trailing the +10.08% return for the Russell Midcap Value Index and outperforming the +9.21% returns of the Russell Midcap Index. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Ariel Appreciation Fund highlighted stocks like Stanley Black & Decker, Inc. (NYSE:SWK) in the third quarter 2024 investor letter. Stanley Black & Decker, Inc. (NYSE:SWK) offers hand tools, power tools, outdoor products, and related accessories. The one-month return of Stanley Black & Decker, Inc. (NYSE:SWK) was -1.54%, and its shares gained 34.87% of their value over the last 52 weeks. On October 16, 2024, Stanley Black & Decker, Inc. (NYSE:SWK) stock closed at $106.36 per share with a market capitalization of $16.375 billion.
Ariel Appreciation Fund stated the following regarding Stanley Black & Decker, Inc. (NYSE:SWK) in its Q3 2024 investor letter:
“Several stocks in the portfolio delivered solid returns in the quarter. Shares of Stanley Black & Decker, Inc. (NYSE:SWK) outperformed following robust quarterly earnings results as well as a subsequent increase in full year guidance. The Tools and Outdoor segment posted positive organic revenue growth for the first time since late 2021. Meanwhile, SWK’s transformation initiatives remain on track. The company delivered margin expansion by realizing savings from sourcing initiatives, productivity improvements and cost efficiencies. Though the macroeconomic backdrop remains challenging, management is cautiously optimistic lower interest rates will drive a recovery in consumer demand. We have conviction in SWK’s experienced executive management team and think the balance sheet is well positioned to weather the storm.”
A toolbox filled with an array of different tools, representing the professional products of the company.
Stanley Black & Decker, Inc. (NYSE:SWK) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Stanley Black & Decker, Inc. (NYSE:SWK) at the end of the second quarter which was 29 in the previous quarter. In the second quarter of 2024, Stanley Black & Decker, Inc. (NYSE:SWK) generated revenue $4 billion, down 3% year-over-year. While we acknowledge the potential of Stanley Black & Decker, Inc. (NYSE:SWK) 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 Stanley Black & Decker, Inc. (NYSE:SWK) and shared the list of stocks with the highest consensus return on equity (ROE) according to Goldman Sachs. 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.