What Makes Corcept Therapeutics (CORT) a Good Investment Bet?

ClearBridge Investments, an investment management company, released its “ClearBridge Small Cap Value Strategy” first quarter 2024 investor letter. A copy of the letter can be downloaded here. The firm focuses on companies with strong balance sheets and attractive cash flows with compelling valuations rather than following market trends. The strategy outperformed the benchmark Russell 2000 Value Index in the first quarter and generated gains across 11 sectors in which it was invested, on an absolute basis. Overall stock selection effects contributed to the performance on a relative basis. In addition, please check the fund’s top five holdings to know its best picks in 2024.

ClearBridge Small Cap Value Strategy highlighted stocks like Corcept Therapeutics Incorporated (NASDAQ:CORT), in the first quarter 2024 investor letter. Corcept Therapeutics Incorporated (NASDAQ:CORT) engages in the discovery and development of drugs. The one-month return of Corcept Therapeutics Incorporated (NASDAQ:CORT) was -2.26%, and its shares gained 22.93% of their value over the last 52 weeks. On June 18, 2024, Corcept Therapeutics Incorporated (NASDAQ:CORT) stock closed at $28.15 per share with a market capitalization of $2.931 billion.

ClearBridge Small Cap Value Strategy stated the following regarding Corcept Therapeutics Incorporated (NASDAQ:CORT) in its first quarter 2024 investor letter:

"We initiated a new position in Corcept Therapeutics Incorporated (NASDAQ:CORT), which is engaged in the discovery and development of drugs used to treat severe endocrinologic, oncologic, metabolic and neurologic disorders in the U.S. Since 2012, Corcept’s Korlym treatment of Cushing’s Syndrome has benefited form market exclusivity. Despite sales rising to $482 million in 2023, Korlym has since encountered generic competition. However, management believes they will not see a decline in revenue, as the rare nature of the disease and specialty distribution channels make it difficult for a pharmacy to swap out the brand name for the generic. In addition, Corcept has a next-generation drug with fewer side effects than Korlym, which should increase its available market. We believe the new drug’s Phase 3 trial results, due very soon, will show approvable efficacy and safety, as well as possible extension into other indications."

A biologist in a lab coat studying a culture of cells to find a cure for metabolic disorders.

Corcept Therapeutics Incorporated (NASDAQ:CORT) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held Corcept Therapeutics Incorporated (NASDAQ:CORT) at the end of the first quarter which was 19 in the previous quarter. The first quarter revenue of Corcept Therapeutics Incorporated (NASDAQ:CORT) was $146.8 million, an increase of 39% year over year. While we acknowledge the potential of Corcept Therapeutics Incorporated (NASDAQ:CORT) 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 addition, please check out our hedge fund investor letters Q1 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.