Will SharkNinja (SN) be Able to Deliver Durable Above-Industry Growth?

Parnassus Investments, an investment management company, released the “Parnassus Growth Equity Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, the Fund (Investor Shares) returned -8.59% (net of fees), outperforming the Russell 1000 Growth Index’s -9.97% decline. In the first quarter, post-election optimism, driven by reduced regulation and a business-friendly environment, drifted away to concerns over fiscal and tariff uncertainties, which increased volatility and raised fears of a recession. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Parnassus Growth Equity Fund highlighted stocks such as SharkNinja, Inc. (NYSE:SN). SharkNinja, Inc. (NYSE:SN) is a product design and technology company that provides cleaning, cooking, beverage, food preparation, and beauty appliances. The one-month return of SharkNinja, Inc. (NYSE:SN) was 1.96%, and its shares gained 21.94% of their value over the last 52 weeks. On June 26, 2025, SharkNinja, Inc. (NYSE:SN) stock closed at $94.11 per share, with a market capitalization of $13.273 billion.

Parnassus Growth Equity Fund stated the following regarding SharkNinja, Inc. (NYSE:SN) in its Q1 2025 investor letter:

"We added to our Consumer Discretionary holdings during the quarter, lessening our underweight. That change was driven primarily by the addition of SharkNinja, Inc. (NYSE:SN), a maker of home appliances. We believe that the company has multiple levers for growth even with tariff uncertainty due to its international expansion and continued portfolio innovation. We continue to focus on Internet names that have less supply chain risk.

SharkNinja is poised for growth as it continues to gain market share in existing markets, develops new products and ventures into international markets. The company’s product innovation, combined with a strong management team and a history of execution, should drive durable above-industry growth."

SharkNinja, Inc. (NYSE:SN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 69 hedge fund portfolios held SharkNinja, Inc. (NYSE:SN) at the end of the first quarter, which was 63 in the previous quarter. In the first quarter, SharkNinja, Inc.’s (NYSE:SN) net sales increased 14.7% year-over-year to more than $1.2 billion. While we acknowledge the potential of SharkNinja, Inc. (NYSE:SN) 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 undervalued AI stock set for massive gains.

In another article, we covered SharkNinja, Inc. (NYSE:SN) and shared the list of best most active stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of SN 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.

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