Should You Hold iRhythm Technologies (IRTC)?

Sands Capital, an investment management company, released its “Sands Capital Global Growth Fund” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. Global Growth adopts a flexible approach to identify the most promising growth companies across the globe. Global equities fell in the first quarter, as per the MSCI ACWI. The strategy underperformed the benchmark amid the weakness. You can check the fund’s top 5 holdings to know more about its best picks for 2025.

In its first-quarter 2025 investor letter, Sands Capital Global Growth Fund highlighted stocks such as IRhythm Technologies, Inc. (NASDAQ:IRTC). IRhythm Technologies, Inc. (NASDAQ:IRTC) is a digital healthcare company that designs and develops device-based technology to provide ambulatory cardiac monitoring services. The one-month return of IRhythm Technologies, Inc. (NASDAQ:IRTC) was 5.47%, and its shares gained 51.82% of their value over the last 52 weeks. On June 5, 2025, IRhythm Technologies, Inc. (NASDAQ:IRTC) stock closed at $145.23 per share, with a market capitalization of $4.64 billion.

Sands Capital Global Growth Fund stated the following regarding IRhythm Technologies, Inc. (NASDAQ:IRTC) in its Q1 2025 investor letter:

“IRhythm Technologies, Inc. (NASDAQ:IRTC) is a pioneer in atrial fibrillation (irregular heartbeat) detection. The company delivered 20 percent revenue growth in 2024 and achieved its first-ever quarterly profit in 2024’s fourth quarter. Despite strong momentum—highlighted by accelerating volume growth throughout the year—2025 guidance appears conservative. While regulatory uncertainty in the United States, particularly around the timing of new product approvals, may influence sentiment in the sector, we are encouraged by iRhythm’s recent execution. In our view, the current valuation provides a margin of safety and reflects limited expectations despite ongoing business progress.”

A patient being monitored with a portable ECG device, showing the effectiveness of the company’s products.

IRhythm Technologies, Inc. (NASDAQ:IRTC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held IRhythm Technologies, Inc. (NASDAQ:IRTC) at the end of the first quarter, which was 24 in the previous quarter. IRhythm Technologies, Inc. (NASDAQ:IRTC) reported revenue of $158.7 million in the first quarter, representing 20.3% year-over-year growth. While we acknowledge the potential of IRhythm Technologies, Inc. (NASDAQ:IRTC) 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 undervalued AI stock set for massive gains.

In another article, we covered IRhythm Technologies, Inc. (NASDAQ:IRTC) and shared the list of best performing healthcare stocks to buy. In addition, please check out our hedge fund investor letters Q1 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.