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Reasons for the Outperformance of Saia (SAIA)

Artisan Partners, an investment management company, released its “Artisan Global Discovery Fund” first quarter 2024 investor letter. A copy of the letter can be downloaded here. In the first quarter, the fund’s Investor Class APFDX returned 8.40%, Advisor Class APDDX posted a return of 8.37%, and Institutional Class APHDX returned 8.48%, compared to an 8.20% return for the MSCI All Country World Index. Broad-based security selection contributions across health care, consumer staples, industrials, and consumer discretionary drove the fund’s outperformance in the quarter. This was partially offset by information technology. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Artisan Global Discovery Fund highlighted stocks like Saia, Inc. (NASDAQ:SAIA), in the first quarter 2024 investor letter. Saia, Inc. (NASDAQ:SAIA) is a North America-based transportation company. The one-month return of Saia, Inc. (NASDAQ:SAIA) was 4.67%, and its shares gained 38.66% of their value over the last 52 weeks. On July 2, 2024, Saia, Inc. (NASDAQ:SAIA) stock closed at $466.37 per share with a market capitalization of $12.363 billion.

Artisan Global Discovery Fund stated the following regarding Saia, Inc. (NASDAQ:SAIA) in its Q1 2024 investor letter:

“Among our top Q1 contributors were Shockwave Medical, Spotify and Saia, Inc. (NASDAQ:SAIA). Saia operates in less-than-truckload shipping, a structurally attractive area of transportation that features several solid franchises supported by real estate assets and network advantages. Saia has been opening new terminals across the country, raising its terminal count by 46 since 2017 to a total of 192 in 2023. The company is entering a new growth phase that should unlock additional operating leverage. Shares rallied after the company released strong financial results, including growth of 15% for revenue and 22% for operating income. Furthermore, the company is taking advantage of the void left in the market after the August 2023 bankruptcy of Yellow, a key competitor.”

A long line of trucks transporting goods across the open road, symbolizing the long-distance transportation services of the company.

Saia, Inc. (NASDAQ:SAIA) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held Saia, Inc. (NASDAQ:SAIA) at the end of the first quarter which was 31 in the previous quarter. Saia, Inc. (NASDAQ:SAIA) reported revenue of $754.8 million in the first quarter, an increase of 14.3% from last year’s first quarter. While we acknowledge the potential of Saia, Inc. (NASDAQ:SAIA) 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.

We discussed Saia, Inc. (NASDAQ:SAIA) in another article and shared the list of best logistics stocks to buy. ClearBridge Select Strategy added Saia, Inc. (NASDAQ:SAIA) to its portfolio in Q1 2024. 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.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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