Itron (ITRI) Shrugged Off Supply Chanin Issues and Focused on Margin Growth

ClearBridge Investments, an investment management company, released its “ClearBridge Small Cap Value Strategy” first quarter 2024 investor letter. A copy of the letter can be downloaded here. The firm focuses on companies with strong balance sheets and attractive cash flows with compelling valuations rather than following market trends. The strategy outperformed the benchmark Russell 2000 Value Index in the first quarter and generated gains across 11 sectors in which it was invested, on an absolute basis. Overall stock selection effects contributed to the performance on a relative basis. In addition, please check the fund’s top five holdings to know its best picks in 2024.

ClearBridge Small Cap Value Strategy highlighted stocks like Itron, Inc. (NASDAQ:ITRI), in the first quarter 2024 investor letter. Itron, Inc. (NASDAQ:ITRI) provides end-to-end solutions that help manage energy, water, and smart city operations. The one-month return of Itron, Inc. (NASDAQ:ITRI) was -3.91%, and its shares gained 42.50% of their value over the last 52 weeks. On June 18, 2024, Itron, Inc. (NASDAQ:ITRI) stock closed at $102.86 per share with a market capitalization of $4.718 billion.

ClearBridge Small Cap Value Strategy stated the following regarding Itron, Inc. (NASDAQ:ITRI) in its first quarter 2024 investor letter:

"For the Strategy in the quarter, stock selection in the IT sector was the largest contributor to relative performance. Network solutions company Itron, Inc. (NASDAQ:ITRI) was also rewarded for strong quarterly results and issuing 2024 guidance above market estimates. The company appears to have largely shrugged off the supply chain issues that have weighed on past performance and looks to continue to improve its margins by closing two weaker-margin factories this year and announcing several new partnerships to support growth in both its software and network segments."

A technician installing a smart meter in a family home, its wireless connectivity bringing modern living.

Itron, Inc. (NASDAQ:ITRI) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Itron, Inc. (NASDAQ:ITRI) at the end of the first quarter which was 31 in the previous quarter. Itron, Inc. (NASDAQ:ITRI) reported first-quarter revenues of $603 million, up $22% year over year, and free cash flow of $34 million, approximately $40 million more than Q1 2023. While we acknowledge the potential of Itron, Inc. (NASDAQ:ITRI) 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.

In another article, we discussed Itron, Inc. (NASDAQ:ITRI) and shared Aristotle Capital Small Cap Equity Strategy’s views on the company in the second quarter. In addition, please check out our hedge fund investor letters Q1 2024 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.