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Itron (ITRI) Has Fallen 23% in Last One Year, Underperforms Market

If you are looking for the best ideas for your portfolio you may want to consider some of White Brook Capital’s top stock picks. White Brook Capital, an investment management firm, is bullish on Itron Inc. (NASDAQ:ITRI) stock. In its Q2 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on Itron Inc. (NASDAQ:ITRI) stock. Itron Inc. (NASDAQ:ITRI) is a technology company.

White Brook Capital said that Itron Inc. (NASDAQ:ITRI) was one of the portfolio’s top performers in Q2 2019. Itron Inc. (NASDAQ:ITRI) stock has posted a return of -22.7% in the trailing one year period, underperforming fund’s benchmark the S&P 500 Index which returned 11.1% in the same period. This suggests that the investment firm was wrong in its decision. On a year-to-date basis, Itron Inc. (NASDAQ:ITRI) stock has fallen by 31.6%.

White Brook Capital fund posted a return of 5.46% in the second quarter of 2019, outperforming fund’s benchmark the S&P 500 Index which returned 4.30% in the same period. Let’s take a look at comments made by White Brook Capital about Itron Inc. (NASDAQ:ITRI) stock in the Q2 2019 investor letter.

“Itron was a noted underperformer last quarter. As a refresher, last quarter I noted that the company underperformed primarily due to the continued shortage of MEMS chips that delayed and increased Itron’s cost to provide older model smart meters no longer in stocked inventory. I also noted that the largest shareholder at the time, Scopia Capital, had created technical pressure by committing to reducing its stake by selling its shares on the open market. I viewed both as short-term issues.

During the second quarter, the company reported a slightly better than expected quarter and Scopia’s sales as a percentage of shares traded were significantly reduced during the second half of the quarter.

The stock recovered. I expect continued appreciation in the stock price as the shortage of MEMS chips abates, with indications that it could occur more quickly than previously expected. Over the long term, the increased complexity of utilities’ grids – driven by the continued spread of solar generation, the increased electrification of transportation, and the need for more monitoring equipment and analysis software to make cities more intelligent and efficient – will continue to generate demand for Itron’s smart meter, analysis, and control systems for years to come. There are likely to be slow quarters, but the future is bright and the valuation is still undemanding.”

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In Q1 2020, the number of bullish hedge fund positions on Itron Inc. (NASDAQ:ITRI) stock decreased by about 10% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t seem to agree with Itron’s growth potential. Our calculations showed that Itron Inc. (NASDAQ:ITRI) 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

At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, this “mom” trader turned $2000 into $2 million within 2 years. So, we are checking out her best trade idea of the month. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. You can subscribe to our free enewsletter below to receive our stories in your inbox:

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