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 Wingstop Inc. (NASDAQ:WING). Wingstop Inc. (NASDAQ:WING) is a restaurant company that operates under the brand name Wingstop. The one-month return of Wingstop Inc. (NASDAQ:WING) was -5.91%, and its shares lost 38.20% of their value over the last 52 weeks. On March 20, 2025, Wingstop Inc. (NASDAQ:WING) stock closed at $220.19 per share with a market capitalization of $6.311 billion.
ClearBridge SMid Cap Strategy stated the following regarding Wingstop Inc. (NASDAQ:WING) in its Q4 2024 investor letter:
“Our biggest detractor was previously strong year-to-date performer Wingstop Inc. (NASDAQ:WING), which franchises and operates restaurants offering classic wings, boneless wings and tenders. The company fell victim to a selloff as investors took profits amid high expectations during the fourth-quarter earnings season. While we had previously trimmed our position size in Wingstop due to what we perceive as elevated valuation levels, we believe that the company’s long-term revenue and profit compounding potential remain attractive and we are maintaining our exposure.”
Customers savoring boneless wings at a bustling restaurant owned by the company.
Wingstop Inc. (NASDAQ:WING) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Wingstop Inc. (NASDAQ:WING) at the end of the fourth quarter which was 39 in the previous quarter. While we acknowledge the potential of Wingstop Inc. (NASDAQ:WING) 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 Wingstop Inc. (NASDAQ:WING) and shared the list of best future food stocks to buy according to analysts. 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.