Here’s Why Envista Holdings Corp. (NVST) Declined in Q2
Ariel Investments, an investment management company, released its “Ariel Small Cap Value Strategy” second-quarter 2023 investor letter. A copy of the same can be downloaded here. Global markets continued their upward trend in the second quarter, exceeding expectations. Meanwhile US economy continues to show signs of economic slowdown as tighter credit conditions weigh on consumers and business confidence. Against this backdrop, the fund advanced +5.19% gross of fees (+4.93% net of fees) in the second quarter, ahead of the Russell 2000 Value Index’s +3.18% gain and relatively in line with the Russell 2000 Index’s +5.21% return. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Ariel Small Cap Value Strategy highlighted stocks like Envista Holdings Corporation (NYSE:NVST) in the second quarter 2023 investor letter. Headquartered in Brea, California, Envista Holdings Corporation (NYSE:NVST) engages in the business of dental products. On September 6, 2023, Envista Holdings Corporation (NYSE:NVST) stock closed at $31.38 per share. One-month return of Envista Holdings Corporation (NYSE:NVST) was -3.95%, and its shares lost 15.12% of their value over the last 52 weeks. Envista Holdings Corporation (NYSE:NVST) has a market capitalization of $5.141 billion.
Ariel Small Cap Value Strategy made the following comment about Envista Holdings Corporation (NYSE:NVST) in its Q2 2023 investor letter:
"Leading global dental manufacturing company, Envista Holdings Corporation (NYSE:NVST), also traded lower on disappointing earnings. Challenges with sanctions in Russia and China due to volume-based procurement (VBP) reimbursement, as well as a weaker environment for large dental equipment more than offset strong growth in the Specialty Products & Technologies segment. Nonetheless, management maintained its full year 2023 guidance, implying an acceleration of top-line growth and operating margin expansion later in the year. In our view, NVST is currently trading at a low valuation and has multiple opportunities to drive upside. We believe NVST will benefit from its rich research and development pipeline, several new products in high-growth dental segments, successful execution from recent M&A, facility consolidation and previous IT investments. We anticipate a re-rating of the stock and multiple expansion relative to peers."
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Envista Holdings Corporation (NYSE:NVST) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Envista Holdings Corporation (NYSE:NVST) at the end of second quarter which was 25 in the previous quarter.
We discussed Envista Holdings Corporation (NYSE:NVST) in another article and shared Artisan Mid Cap Fund's views on the company. In addition, please check out our hedge fund investor letters Q2 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.
