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Sound Shore Management, an investment management firm, has released its investor letter for the third quarter of 2024. A copy of the letter can be downloaded here. The fund’s Investor Class (SSHFX) and Institutional Class (SSHVX) appreciated 6.70% and 6.74%, respectively, in the third quarter of 2024, outperforming 5.89% return for the Standard & Poor’s 500 Index (S&P 500), and trailing 9.43% return for the Russell 1000 Value Index (Russell Value). In addition, please check the fund’s top five holdings to know its best picks in 2024.
Sound Shore Management highlighted stocks like Avantor, Inc. (NYSE:AVTR), in the third quarter 2024 investor letter. Avantor, Inc. (NYSE:AVTR) provides mission-critical products and services to biopharma, healthcare, education and government, advanced technologies, and applied materials industries. The one-month return of Avantor, Inc. (NYSE:AVTR) was 3.68%, and its shares lost 7.78% of their value over the last 52 weeks. On December 18, 2024, Avantor, Inc. (NYSE:AVTR) stock closed at $21.11 per share with a market capitalization of $14.368 billion.
Sound Shore Management stated the following regarding Avantor, Inc. (NYSE:AVTR) in its Q3 2024 investor letter:
"Similarly, a strong earnings report helped advance life science tools leader Avantor, Inc. (NYSE:AVTR). Improved margins and growth in its bioprocessing business drove the earnings beat. The company is near the end of an inventory correction related to supply chain disruptions during the pandemic. Returning to growth will showcase the quality of Avantor’s business. Avantor enjoys greater than 85% of revenues in typically steady consumables and services businesses. Trading at a discount to peers at 17 times normalized earnings, the company remains a full position."
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Avantor, Inc. (NYSE:AVTR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held Avantor, Inc. (NYSE:AVTR) at the end of the third quarter which was 53 in the previous quarter. Avantor, Inc. (NYSE:AVTR) reported revenue rose sequentially to $1.71 billion in the third quarter, while organic revenue fell 0.7% year-over-year. While we acknowledge the potential of Avantor, Inc. (NYSE:AVTR) 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.