Do You Believe in the Earnings Stability of Novanta (NOVT)?
Fred Alger Management, an investment management company, released its “Alger Weatherbie Specialized Growth Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. During the quarter, Class A shares of the fund underperformed the Russell 2500 Growth Index. Healthcare and industrials were the largest sector weightings during the quarter. The financials and consumer discretionary were the leading relative performance contributors while healthcare and energy detracted. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Alger Weatherbie Specialized Growth Fund highlighted stocks like Novanta Inc. (NASDAQ:NOVT) in the third quarter 2023 investor letter. Headquartered in Bedford, Massachusetts, Novanta Inc. (NASDAQ:NOVT) provides core technology solutions to healthcare and advanced industrial original equipment manufacturers. On October 18, 2023, Novanta Inc. (NASDAQ:NOVT) stock closed at $146.24 per share. One-month return of Novanta Inc. (NASDAQ:NOVT) was 2.96%, and its shares gained 21.71% of their value over the last 52 weeks. Novanta Inc. (NASDAQ:NOVT) has a market capitalization of $5.332 billion.
Alger Weatherbie Specialized Growth Fund made the following comment about Novanta Inc. (NASDAQ:NOVT) in its Q3 2023 investor letter:
"Novanta Inc. (NASDAQ:NOVT) is a leading global supplier of core technology solutions that give medical and advanced industrial original equipment manufacturers a competitive advantage. We believe that Novanta is a high-quality company with a history of steady execution, distinct competitive advantages, and exposure to growing markets. The company has attractive exposure to an accelerating spending environment within its medical segment, as well as attractive industrial exposure levered to the secular growth trends of robotics, automation, and additive manufacturing. During the period, shares detracted from performance as the company was tied to the perceived risk of the rising uptake of obesity drugs (GLP-1's), given their medical technologies exposure. Moreover, a weaker than expected industrial outlook from China further exacerbated the decline in the company's share price. Despite the near-term headwinds, we believe in the company's earnings stability and find that the GLP- 1 headwind can be managed."
A scientist working on a complex photonics instruments in a sterile laboratory setting. Editorial photo for a financial news article. 8k. --ar 16:9
Novanta Inc. (NASDAQ:NOVT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held Novanta Inc. (NASDAQ:NOVT) at the end of second quarter which was 10 in the previous quarter.
We discussed Novanta Inc. (NASDAQ:NOVT) in another article and shared Artisan Global Discovery Fund's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2023 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.
