ClearBridge Investments, an investment management company, released its “ClearBridge SMid Cap Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. Smid cap growth stock rose in the fourth quarter driven by a post-election surge and the market’s shift back to growth leadership in December. The ClearBridge SMID Growth Strategy beat its Russell 2500 Growth Index benchmark in the fourth quarter due to robust stock selection in health care and materials sectors, which outperformed detractors in consumer discretionary holdings. To get an idea of the fund’s best choices for 2024, check out its top 5 positions.
In its fourth quarter 2024 investor letter, ClearBridge SMid Cap Strategy emphasized stocks such as RadNet, Inc. (NASDAQ:RDNT). Headquartered in Los Angeles, California, RadNet, Inc. (NASDAQ:RDNT) provides outpatient diagnostic imaging services. One-month return of RadNet, Inc. (NASDAQ:RDNT) was -16.41%, and its shares gained 3.48% of their value over the last 52 weeks. On March 20, 2025, RadNet, Inc. (NASDAQ:RDNT) stock closed at $49.71 per share with a market capitalization of $3.68 billion.
ClearBridge SMid Cap Strategy stated the following regarding RadNet, Inc. (NASDAQ:RDNT) in its Q4 2024 investor letter:
“We added a new position in RadNet, Inc. (NASDAQ:RDNT), in the health care sector, which owns and operates freestanding diagnostic imaging centers. The imaging market is seeing secular growth from a shift in the site of care from the more expensive inpatient setting to freestanding centers like RadNet, which has both an attractive organic share opportunity and new construction and acquisition-based geographic expansion potential. AI applications also offer RadNet both an additional revenue stream and cost savings potential.”
A radiologist studying a monitor with a detailed image of a lung cancer tumor.
RadNet, Inc. (NASDAQ:RDNT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held RadNet, Inc. (NASDAQ:RDNT) at the end of the fourth quarter which was 20 in the previous quarter. In the fourth quarter, RadNet, Inc.’s (NASDAQ:RDNT) revenue increased 13.5% to $477.1 million and adjusted EBITDA increased 14% from Q4 2023 to $75 million. While we acknowledge the potential of RadNet, Inc. (NASDAQ:RDNT) 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 RadNet, Inc. (NASDAQ:RDNT) and shared the list of top trending AI news updates that investors likely missed. In addition, please check out our hedge fund investor letters Q4 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.