Investment management company Invesco Distributors released the Investor Letter for the Invesco Growth and Income Fund for the second quarter of 2024. A copy of the letter can be downloaded here. AI-related stocks continued to rise during the quarter, propelling many stock indexes to all-time highs, while other non-AI-related market segments fell. The fund underperformed its Russell 1000 Value Index (USD) benchmark during the second quarter. The fund's relative performance decline was due to stock selection in the industrial and healthcare sectors. Relative performance was added by stock selection in communication services and financials. Additionally, you can check out the fund's top five holdings to determine your best picks for 2024.
Invesco Growth & Income Fund featured stocks such as CVS Health Corporation (NYSE: CVS) in its Investor Letter for Q2 2024. CVS Health Corporation (NYSE: CVS) is a health solutions provider based in the United States. CVS Health Corporation (NYSE: CVS) has a one-month return of 1.43% and its stock price has fallen by 12.30% over the past 52 weeks. On August 19, 2024, CVS Health Corporation (NYSE: CVS) stock price closed at $58.80 per share, with a market capitalization of $73.969 billion.
In its Q2 2024 investor letter, Invesco Growth & Income Fund said the following about CVS Health Corporation (NYSE: CVS):
“Stock selection in the industrial and healthcare sectors dragged down relative performance for the quarter. Selection and underweight in the consumer staples sector also dragged down relative returns as it was one of only two index sectors to post a positive return for the quarter. CVS Health Corporation (NYSE: CVS): Shares fell following a weak earnings report. The pharmacy operator also lowered its full-year earnings forecast due to rising healthcare costs and higher utilization in the insurance sector.”
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Rows of shelves in a retail pharmacy, displaying a variety of pharmaceutical and over-the-counter drugs.
CVS Health Corporation (NYSE:CVS) is not on our list of the 31 most popular stocks among hedge funds. According to our database, 60 hedge fund portfolios held CVS Health Corporation (NYSE:CVS) at the end of the second quarter, up from 54 in the previous quarter. In the second quarter, CVS Health Corporation (NYSE:CVS) reported revenues of approximately $91.2 billion, up 2.5% from the second quarter of 2023. While we acknowledge the potential of CVS Health Corporation (NYSE:CVS) as an investment, we believe that AI stocks are more likely to deliver higher returns and do so in a shorter time frame. If you are looking for AI stocks that are as promising as NVIDIA but trade at less than 5 times earnings, check out our report on the cheapest AI stocks.
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In another article, we covered CVS Health Corporation (NYSE:CVS) and shared a list of the best health insurance stocks to buy. In our Q2 2024 investor letter, Patient Capital Opportunity Equity Strategy covered the decline of CVS Health Corporation (NYSE:CVS) due to disappointing Q1 earnings and lowered guidance. Additionally, to learn more about investor letters from hedge funds and other leading investors, please visit our Q2 2024 Hedge Fund Investor Letters page.
Read next: Michael Burry sells these stocks and a new dawn dawns for US stocks.
Disclosures: None. This article was originally published on Insider Monkey.
