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QuidelOrtho (QDEL) Trembled on Disappointing Guidance

Soumya Eswaran
·3-min read

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 QuidelOrtho Corporation NASDAQ:QDEL), in the first quarter 2024 investor letter. QuidelOrtho Corporation (NASDAQ:QDEL) is a diagnostic testing solutions provider. The one-month return of QuidelOrtho Corporation (NASDAQ:QDEL) was -13.88%, and its shares lost 59.22% of their value over the last 52 weeks. On June 18, 2024, QuidelOrtho Corporation (NASDAQ:QDEL) stock closed at $35.61 per share with a market capitalization of $2.385 billion.

ClearBridge Small Cap Value Strategy stated the following regarding QuidelOrtho Corporation (NASDAQ:QDEL) in its first quarter 2024 investor letter:

"Stock selection in the health care sector was the main detractor during the period. QuidelOrtho Corporation (NASDAQ:QDEL), a leading provider of in vitro diagnostic solutions for a wide range of diseases and health conditions, saw its share price retreat after another weak quarter and disappointing 2024 guidance due to further declines in the high-margin respiratory business and the recent dismissal of its CEO. While these catalysts have spurred a review of our investment case for QuidelOrtho, we continue to see its base labs business providing strong and steady free cash flow."

A scientist observing the results of a molecular diagnostic test.

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QuidelOrtho Corporation (NASDAQ:QDEL) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held QuidelOrtho Corporation (NASDAQ:QDEL) at the end of the first quarter which was 32 in the previous quarter. In the first quarter 2024, QuidelOrtho Corporation (NASDAQ:QDEL) reported revenue of $711 million, down from $846 million in the prior year period. While we acknowledge the potential of QuidelOrtho Corporation (NASDAQ:QDEL) 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 QuidelOrtho Corporation (NASDAQ:QDEL) and shared Aristotle Capital Small Cap Equity Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.