Will Kenvue (KVUE) Benefit from Demographic and Global Economic Trends

Ariel Investments, an investment management company, released its “Ariel Focus Fund” third-quarter 2023 investor letter. A copy of the same can be downloaded here.  In the third quarter, the fund fell -5.87 % compared to a -3.16% and -3.27% decline for the Russell 1000 Value Index and the S&P 500 Index, respectively. Global markets fell in the third quarter. In this context, the government bond yield spiked, which put pressure on the equities and led the high values “magnificent seven” to lose their shine. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Ariel Focus Fund highlighted stocks like Kenvue Inc. (NYSE:KVUE) in the third 2023 investor letter. Headquartered in Skillman, New Jersey, Kenvue Inc. (NYSE:KVUE) is a consumer health company. On December 8, 2023, Kenvue Inc. (NYSE:KVUE) stock closed at $20.61 per share. One-month return of Kenvue Inc. (NYSE:KVUE) was 7.91%, and its shares gained 6.62% of their value over the last three months. Kenvue Inc. (NYSE:KVUE) has a market capitalization of $39.466 billion.

Ariel Focus Fund made the following comment about Kenvue Inc. (NYSE:KVUE) in its third 2023 investor letter:

“We also added consumer health company, Kenvue Inc. (NYSE:KVUE), through an exchange offer from our position in Johnson & Johnson (JNJ). We view Kenvue as a beneficiary of current demographic and global economic trends, as demand for and spend on healthcare generally increases as populations age and disposable incomes rise. We expect the company’s future earnings growth to be driven by continued innovation within its current product portfolio, robust cash flows and increasing global demand for healthcare, which should increase in both absolute dollars and as a percentage of GDP over the long-term.”

A pharmacist at work in their online pharmacy checking over orders for pharmaceutical products.

Kenvue Inc. (NYSE:KVUE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 84 hedge fund portfolios held Kenvue Inc. (NYSE:KVUE) at the end of third quarter which was 31 in the previous quarter.

We discussed Kenvue Inc. (NYSE:KVUE) in another article and shared $5 billion hedge fund Skye Global’s top stock picks. In addition, please check out our hedge fund investor letters Q3 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.