Should You Continue to Hold Alcon (ALC)?

Aristotle Capital Management, LLC, an investment management company, released its “Value Equity Strategy” second quarter 2025 investor letter. A copy of the letter can be downloaded here. Although the U.S. equity market started with volatility in the second quarter, it rebounded with strength, with the S&P 500 Index rising 10.94% during the quarter. The composite returned 4.88% gross of fees (4.75% net of fees) in the first quarter, outperforming the 3.78% return of the Russell 1000 Value Index and underperforming the 10.94% return of the S&P 500 Index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second quarter 2025 investor letter, Aristotle Capital Value Equity Strategy highlighted stocks such as Alcon Inc. (NYSE:ALC). Headquartered in Geneva, Switzerland, Alcon Inc. (NYSE:ALC) engages in the research, development, manufacturing, and distribution of eye care products.  The one-month return of Alcon Inc. (NYSE:ALC) was 1.24%, and its shares lost 4.06% of their value over the last 52 weeks. On July 22, 2025, Alcon Inc. (NYSE:ALC) stock closed at $88.66 per share, with a market capitalization of $43.853 billion.

Aristotle Capital Value Equity Strategy stated the following regarding Alcon Inc. (NYSE:ALC) in its second quarter 2025 investor letter:

“Alcon Inc. (NYSE:ALC), a global leader in eye care, was one of the largest detractors during the quarter. Aside from its earnings report, there was little material news, and we did not view anything in the report as affecting the company’s long-term fundamentals. While quarterly updates can influence sentiment, our focus remains on the strength and quality of the business. Alcon operates in a resilient, oligopolistic industry with high barriers to entry and recurring revenue streams tied to its large installed base of cataract surgery systems. It also continues to innovate across product categories, including its premium intraocular lens portfolio (e.g., PanOptix, Vivity), ultra-premium daily contact lenses (e.g., Dailies Total1) and over-the-counter products, such as Systane for dry eyes. Since its spinoff from Novartis in 2019, the company has also demonstrated greater agility in R&D, commercial execution and capital allocation—catalysts we previously identified. More broadly, we believe Alcon’s ability to strengthen its partnerships with eye care professionals and broaden access to underutilized premium technologies makes the company uniquely positioned to benefit from an aging population, increased access to eye care in emerging markets, and rising awareness and diagnosis of chronic dry eye conditions.”

In another article, we covered Alcon Inc. (NYSE:ALC) and shared the list of best 52-week low stocks to buy. In addition, please check out our hedge fund investor letters Q2 2025 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.