Invesco Distributors, Inc., an investment management firm, released its “Invesco Growth and Income Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. AI-related stocks kept rising and propelled many equity indexes to record highs, in the quarter, while other non-AI-linked market segments saw declines. The fund underperformed its Russell 1000 Value Index (USD) benchmark in the second quarter. The fund’s relative underperformance was caused by stock selection in the industrial and healthcare sectors. Relative performance was added by stock selection in communication services and financials. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Invesco Growth and Income Fund highlighted stocks like CVS Health Corporation (NYSE:CVS), in the second quarter 2024 investor letter. CVS Health Corporation (NYSE:CVS) is a US-based health solutions provider. The one-month return of CVS Health Corporation (NYSE:CVS) was 1.43%, and its shares lost 12.30% of their value over the last 52 weeks. On August 19, 2024, CVS Health Corporation (NYSE:CVS) stock closed at $58.80 per share with a market capitalization of $73.969 billion.
Invesco Growth and Income Fund stated the following regarding CVS Health Corporation (NYSE:CVS) in its Q2 2024 investor letter:
“Stock selection in the industrials and health care sectors detracted from relative performance during the quarter. Selection and an underweight in consumer staples also hurt relative return as the sector was one of just two index sectors with a positive return for the quarter. CVS Health Corporation (NYSE:CVS): Shares declined following a weak earnings report. The pharmacy operator also cut its full year earnings forecast due to rising medical costs and higher utilization in its insurance segment.”
A row of shelves in a retail pharmacy, demonstrating the variety of drugs and over-the-counter products.
CVS Health Corporation (NYSE:CVS) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 60 hedge fund portfolios held CVS Health Corporation (NYSE:CVS) at the end of the second quarter which was 54 in the previous quarter. In the second quarter, CVS Health Corporation (NYSE:CVS) reported approximately $91.2 billion in revenues, reflecting a 2.5% increase from Q2 2023. While we acknowledge the potential of CVS Health Corporation (NYSE:CVS) 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 CVS Health Corporation (NYSE:CVS) and shared the list of best health insurance stocks to buy. In the Q2 2024 investor letter, Patient Capital Opportunity Equity Strategy discussed CVS Health Corporation’s (NYSE:CVS) decline due to disappointing first-quarter earnings and a lowered guidance. 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.
