Should You Invest in Enovis Corporation (ENOV) For its Ample Growth Opportunities?
Alphyn Capital Management, an investment management firm, released its first-quarter 2023 investor letter. The same can be downloaded here. The fund returned 7.5% (net) in the first quarter compared to a 7.5% return for the S&P500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Alphyn Capital Management highlighted stocks like Enovis Corporation (NYSE:ENOV) in the first quarter 2023 investor letter. Headquartered in Wilmington, Delaware, Enovis Corporation (NYSE:ENOV) is a medical technology company. On April 26, 2023, Enovis Corporation (NYSE:ENOV) stock closed at $56.81 per share. One-month return of Enovis Corporation (NYSE:ENOV) was 7.41%, and its shares lost 14.40% of their value over the last 52 weeks. Enovis Corporation (NYSE:ENOV) has a market capitalization of $3.096 billion.
Alphyn Capital Management made the following comment about Enovis Corporation (NYSE:ENOV) in its Q1 2023 investor letter:
"Enovis Corporation (NYSE:ENOV) is an intriguing company with a team steeped in Danaher’s operating excellence with a potentially long growth runway through innovation and acquisitions. The company has two operating segments: the more mature Prevention & Recovery, which includes the market-leading DonJoy brand in injury recovery products such as knee braces, and the faster-growing Reconstruction segment focusing on surgical implants. Enovis aims to accelerate the latter’s growth within Ambulatory Service Centers (ASCs) using its established relationships through the DonJoy business.
Enovis, formerly Colfax, was established after spinning out ESAB, a welding systems manufacturer (we retained our shares following the spin). ESAB serves as an indicator of Enovis’ financial potential. By applying the renowned “Danaher business system” that permeates its culture and operations, ESAB now achieves organic revenue growth in the low teens and operating profit margins of approximately 15% (excluding amortization of acquisition intangibles). Enovis has 6% organic growth and margins of roughly 7.5%, presenting considerable upside if it can emulate ESAB’s success with a similar operational focus and scale."
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Enovis Corporation (NYSE:ENOV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held Enovis Corporation (NYSE:ENOV) at the end of the fourth quarter which was 30 in the previous quarter.
We discussed Enovis Corporation (NYSE:ENOV) in another article and shared the list of largest orthopedic companies in the world. In addition, please check out our hedge fund investor letters Q1 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.
