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Endo International (ENDP) Has Fallen 8% in Last One Year, Underperforms Market

If you are looking for the best ideas for your portfolio you may want to consider some of Miller Value Partners top stock picks. Miller Value Partners, an investment management firm, is bullish on Endo International Plc (NASDAQ:ENDP) stock. In its Deep Value Strategies Q2 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on Endo International Plc (NASDAQ:ENDP) stock. Endo International Plc (NASDAQ:ENDP) is a pharmaceutical company.

On July 23, 2019, Miller Value Partners had released its Deep Value Strategies Q2 2019 investor letter. Endo International Plc (NASDAQ:ENDP) stock has posted a return of -7.8% in the trailing one year period, underperforming the S&P 500 Index which returned 15.1% in the same period. This suggests that the investment firm was wrong in its decision. On a year-to-date basis, Endo International Plc (NASDAQ:ENDP) stock has fallen by 39.7%.

Let’s take a look at comments made by Miller Value Partners about Endo International Plc (NASDAQ:ENDP) stock in the Q2 2019 investor letter.

“We also saw considerable price weakness from our two generic company holdings Endo Pharmaceutical (ENDP) and Teva Pharmaceutical (TEVA). Over the past couple of years, both companies have new business leaders who have already taken significant actions to cull unprofitable product lines, right-size cost structures and streamline operations. Teva Pharmaceutical is also rolling out new product offerings to the marketplace and Endo Pharmaceutical has a considerable new product opportunity with the potential to deliver incremental sales ahead of expectations over the next couple of years. Both companies have been under pressure, similar to peers, due to a multi-year cyclical downturn for generic pricing and ongoing concerns on future litigation expenses from historical opioid sales and alleged price-fixing. Both Teva and Endo were down significantly during the quarter. Current valuation levels for the companies appear to already be discounting significant future litigation expenses. Also, the history of the industry has shown settlements tend to be manageable for companies and paid out over multi-year time periods. Meanwhile, generic fundamentals appear to be turning around as recent industry pricing has started to stabilize. With the current earnings yields between 30-40%, a lot of fear appears already priced into the securities, making any change in market perceptions on the well-known risks potentially leading to higher market prices as both companies are at deep discounts to their intrinsic value.”

Patricia Chumillas/Shutterstock.com

In July, we published an article revealing Miller Value Partners investment thesis on Endo International Plc (NASDAQ:ENDP) stock in its Q2 2020 investor letter. This suggests that the investment firm has been bullish for a long time on Endo International Plc (NASDAQ:ENDP).

In Q1 2020, the number of bullish hedge fund positions on Endo International Plc (NASDAQ:ENDP) stock increased by about 29% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with Endo International’s growth potential. Our calculations showed that Endo International Plc (NASDAQ:ENDP) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

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