Is GE HealthCare Technologies (GEHC) an Undervalued Stock?

Investment management company Vulcan Value Partners recently released its first-quarter 2023 investor letter. A copy of the same can be downloaded here. The firm has five strategies, and all gained positive returns and outperformed their respective benchmark indexes in the first quarter. The fund’s Large-Cap Composite returned 14.0% net of fees and expenses, the Small Cap Composite returned 8.1% net, the Focus Composite returned 20.4% net, the Focus Plus composite returned 20.4%, and the All-Cap Composite returned 16.8% net. You can check the top 5 holdings of the fund to know its best picks in 2023.

Vulcan Value Partners highlighted stocks like GE HealthCare Technologies Inc. (NASDAQ:GEHC) in the first quarter 2023 investor letter. Headquartered in Chicago, Illinois, GE HealthCare Technologies Inc. (NASDAQ:GEHC) provides medical technology, pharmaceutical diagnostics, and digital solutions. On May 4, 2023, GE HealthCare Technologies Inc. (NASDAQ:GEHC) stock closed at $78.26 per share. One-month return of GE HealthCare Technologies Inc. (NASDAQ:GEHC) was -2.37%, and dear-to-date its shares gained 34.05% of their value. GE HealthCare Technologies Inc. (NASDAQ:GEHC) has a market capitalization of $35.583 billion.

Vulcan Value Partners made the following comment about GE HealthCare Technologies Inc. (NASDAQ:GEHC) in its Q1 2023 investor letter:

“We sold GE HealthCare Technologies Inc. (NASDAQ:GEHC) during the quarter. GE HealthCare is a recent spin-off from General Electric Company and provides imaging, ultrasound, patient care solutions and pharmaceutical diagnostics to customers around the world. The company is a leader in a global oligopoly and has a massive installed base. Half of the company’s revenue is recurring, margins are stable to rising, and it generates significant free cash flow. As a recent operating unit inside of GE, we believe the market has been undervaluing this asset. Although the spin price reflected this under-valuation, after the spin-off, its stock price rose to meet our estimate of its intrinsic value, and we sold the position. GE HealthCare remains on our MVP list.”

Cheap Healthcare Stocks to Buy in 2023

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GE HealthCare Technologies Inc. (NASDAQ:GEHC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 8 hedge fund portfolios held GE HealthCare Technologies Inc. (NASDAQ:GEHC) at the end of the fourth quarter which was 0 in the previous quarter. In addition, please check out our hedge fund investor letters Q1 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.