Revolve Group (RVLV) Rose on Improved Fundamentals

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Polen Capital, an investment management company, released its “Polen U.S. Small Company Growth Strategy” third-quarter 2024 investor letter. A copy of the letter can be downloaded here. The third quarter had a strong finish for U.S. small-cap equities, driven by interest rate reductions and fading recessionary concerns. In the third quarter, the fund delivered 7.65% gross, and 7.35% net of fees compared to an 8.41% return for the Russell 2000 Growth Index. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2024.

Polen U.S. Small Company Growth Strategy highlighted stocks like Revolve Group, Inc. (NYSE:RVLV), in the third quarter 2024 investor letter. Revolve Group, Inc. (NYSE:RVLV) is an online fashion retailer for millennial and Generation Z consumers. The one-month return of Revolve Group, Inc. (NYSE:RVLV) was 25.63%, and its shares gained 121.63% of their value over the last 52 weeks. On November 15, 2024, Revolve Group, Inc. (NYSE:RVLV) stock closed at $32.89 per share with a market capitalization of $2.327 billion.

Polen U.S. Small Company Growth Strategy stated the following regarding Revolve Group, Inc. (NYSE:RVLV) in its Q3 2024 investor letter:

"Revolve Group, Inc. (NYSE:RVLV), an online apparel retailer targeting primarily the Millennial and Gen Z demographics, was another top performer by demonstrating improving fundamentals after a challenging period. While the consumer environment remains under pressure, we are encouraged by the company's efforts to drive cost efficiencies, reduce return rates, expand product lines, and continue its international push. We believe Revolve is well-positioned to grow earnings at an accelerating rate over the near term while the long-term outlook remains intact."

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A modern fashion boutique lit up with neon display signs.

Revolve Group, Inc. (NYSE:RVLV) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Revolve Group, Inc. (NYSE:RVLV) at the end of the second quarter which was 13 in the previous quarter. Revolve Group, Inc.’s (NYSE:RVLV) net sales increased 10% in the third quarter to $283 million. While we acknowledge the potential of Revolve Group, Inc. (NYSE:RVLV) 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.

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