What Makes Penumbra (PEN) a Good Investment?

ClearBridge Investments, an investment management company, released its “ClearBridge Select Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. equities strongly rebounded in the second quarter. The S&P 500 Index returned 10.9%, and the benchmark Russell 3000 Index advanced 11.0%, as risk-on sentiment took hold following the pause in tariff implementation. The strategy outperformed the benchmark in the quarter, driven by the strength in portfolio construction across companies and sectors with distinct growth drivers. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, ClearBridge Select Strategy highlighted stocks such as Penumbra, Inc. (NYSE:PEN). Headquartered in Alameda, California, Penumbra, Inc. (NYSE:PEN) designs and manufactures medical devices. The one-month return of Penumbra, Inc. (NYSE:PEN) was 1.96%, and its shares gained 27.62% of their value over the last 52 weeks. On September 17, 2025, Penumbra, Inc. (NYSE:PEN) stock closed at $256.29 per share, with a market capitalization of $9.995 billion.

ClearBridge Select Strategy stated the following regarding Penumbra, Inc. (NYSE:PEN) in its second quarter 2025 investor letter:

"Penumbra, Inc. (NYSE:PEN) is a name we are familiar with from owning across other portfolios at ClearBridge. The company’s products use an aspirator to remove clots from the brain, heart, lungs and peripheral circulation. With this new innovation quickly becoming a best-in-class approach among physicians, Penumbra is continuing to develop new products to serve this large and growing market, and we anticipate a major product release later this year."

Penumbra, Inc. (NYSE:PEN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 47 hedge fund portfolios held Penumbra, Inc. (NYSE:PEN) at the end of the second quarter, compared to 47 in the previous quarter. In the second quarter of 2025, Penumbra, Inc. (NYSE:PEN) reported revenue of $339.5 million, marking year-over-year increase of 13.4% on a reported basis and 12.7% on a constant currency basis. While we acknowledge the potential of Penumbra, Inc. (NYSE:PEN) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Penumbra, Inc. (NYSE:PEN) and shared Baron Health Care Fund's views on the company. In addition, please check out our hedge fund investor letters Q2 2025 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.