Is CNH Industrial N.V. (CNH) a Compelling Stock?
Oakmark Funds, advised by Harris Associates, released its “Oakmark Global Select Fund” second quarter 2024 investor letter. A copy of the fund can be downloaded here. The fund returned -1.68% in the quarter compared to a 2.63% return for the MSCI World Index (net). The fund generated 7.39% since its inception, compared to the index’s 7.47% return over the same period. The largest contributing sectors were communication services and consumer discretionary, while the largest detractors were health care and industrials. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Oakmark Global Select Fund highlighted stocks like CNH Industrial N.V. (NYSE:CNH) in its Q2 2024 investor letter. CNH Industrial N.V. (NYSE:CNH), is an equipment and services company, that engages in the design, production, marketing, sale, and financing of agricultural and construction equipment. The one-month return of CNH Industrial N.V. (NYSE:CNH) was -3.65%, and its shares lost 33.07% of their value over the last 52 weeks. On July 11, 2024, CNH Industrial N.V. (NYSE:CNH) stock closed at $10.02 per share with a market capitalization of $12.6 Billion.
Oakmark Global Select Fund stated the following regarding CNH Industrial N.V. (NYSE:CNH) in its Q2 2024 investor letter:
"CNH Industrial N.V. (NYSE:CNH) was the top detractor during the quarter. The U.S.-headquartered manufacturer of agriculture and construction equipment announced that CEO Scott Wine will be replaced by Gerrit Marx, CEO of Iveco Group, effective July 1, 2024. Scott made significant contributions to CNH Industrial in the areas of product, technology, and cost efficiency and we were disappointed to see him leave the business. We met with both Executive Chair Suzanne Heywood and Scott in April, which provided insight into the management change. CNH Industrial also slightly reduced guidance for 2024 when reporting first quarter results due to a weaker agriculture equipment market. This reduction was consistent with our forecasts and does not impact our view of the long-term profitability potential of the business. We believe that CNH Industrial’s position within the structurally attractive agriculture equipment market will improve in the coming years. As a result, we continue to believe the stock is compelling."
A tractor plowing a field in the warm golden light of a setting sun.
CNH Industrial N.V. (NYSE:CNH) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held CNH Industrial N.V. (NYSE:CNH) at the end of the first quarter which was 29 in the previous quarter. While we acknowledge the potential of CNH Industrial N.V. (NYSE:CNH) 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 CNH Industrial N.V. (NYSE:CNH) in another article and shared the list of best largest heavy equipment manufacturers in the world as of 2024. In addition, please check out our hedge fund investor letters Q2 2024 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.