Invesco Distributors, Inc., an investment management firm, released its “Invesco Small Cap Value Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund underperformed the benchmark due to stock selection and an overweight in industrials. A lack of exposure to real estate also detracted from relative performance. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.

Invesco Small Cap Value Fund highlighted stocks like Lumentum Holdings Inc. (NASDAQ:LITE) in the third quarter 2024 investor letter. Lumentum Holdings Inc. (NASDAQ:LITE) offers optical and photonic products that operates through Cloud & Networking and Industrial Tech segments. The one-month return of Lumentum Holdings Inc. (NASDAQ:LITE) was -3.17%, and its shares gained 60.97% of their value over the last 52 weeks. On December 18, 2024, Lumentum Holdings Inc. (NASDAQ:LITE) stock closed at $82.90 per share with a market capitalization of $5.7 billion.

Invesco Small Cap Value Fund stated the following regarding Lumentum Holdings Inc. (NASDAQ:LITE) in its Q3 2024 investor letter:

"Lumentum Holdings Inc. (NASDAQ:LITE): This market-leading designer and manufacturer of innovative optical and photonic products for the communications and electronics end markets reported better-than-expected earnings and revenue growth for its fiscal fourth quarter and provided upbeat guidance going forward."

A scientist working on a complex photonics instruments in a sterile laboratory setting.

Lumentum Holdings Inc. (NASDAQ:LITE) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 279 hedge fund portfolios held Lumentum Holdings Inc. (NASDAQ:LITE) at the end of the third quarter which was 279 in the previous quarter. In the fiscal first quarter of 2025, Lumentum Holdings Inc. (NASDAQ:LITE) reported revenue of $336.9 million and non-GAAP EPS of $0.18 were above the high end of guidance ranges. While we acknowledge the potential of Lumentum Holdings Inc. (NASDAQ:LITE) 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.

In another article, we discussed Lumentum Holdings Inc. (NASDAQ:LITE) and shared the list of most promising EV stocks to buy according to hedge funds along with the industry outlook. In addition, please check out our hedge fund investor letters Q3 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.