Here’s Why Shift4 Payments (FOUR) Stock Traded Lower in Q1

Scout Investments, Inc, an affiliate of Carillon Tower Advisers, released the “Carillon Scout Mid Cap Fund” first quarter 2024 investor letter. A copy of the letter can be downloaded here. In the first quarter, most indices generated significant gains driven by more cyclical industries including energy, financials, and industrials. The combination of a positive outlook for monetary policy, low unemployment, and strong earnings growth expectations lifted the S&P 500 Index to an all-time high in the first quarter. The Russell 2000 Index continued to trade considerably below its peak, while the Russell Midcap Index neared its 2021 high. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Carillon Scout Mid Cap Fund highlighted stocks like Shift4 Payments, Inc. (NYSE:FOUR), in the first quarter 2024 investor letter. Shift4 Payments, Inc. (NYSE:FOUR) offers software and payment processing solutions. The one-month return of Shift4 Payments, Inc. (NYSE:FOUR) was 3.66%, and its shares gained 8.81% of their value over the last 52 weeks. On June 18, 2024, Shift4 Payments, Inc. (NYSE:FOUR) stock closed at $69.04 per share with a market capitalization of $6.044 billion.

Carillon Scout Mid Cap Fund stated the following regarding Shift4 Payments, Inc. (NYSE:FOUR) in its first quarter 2024 investor letter:

"Shift4 Payments, Inc. (NYSE:FOUR) was another bottom contributor. The payments company was openly considering a sale, but management determined the offers failed to appropriately value the business, which sent the stock lower. We believe Shift4 has significant revenue and earnings growth potential at a reasonable valuation. We expect growth to come from serving larger customers both in the United States and overseas."

A business person using a mobile point of sale device outside of a retail store.

Shift4 Payments, Inc. (NYSE:FOUR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held Shift4 Payments, Inc. (NYSE:FOUR) at the end of the first quarter which was 34 in the previous quarter. While we acknowledge the potential of Shift4 Payments, Inc. (NYSE:FOUR) 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 Shift4 Payments, Inc. (NYSE:FOUR) and shared the list of fastest growing fintech companies in 2024. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.