10 Best Stocks to Buy According to Value Investor Oldfield Partners

7. Middleby Corporation (NASDAQ:MIDD)

Oldfield Partners’ Stake Value: $40,171,450

Percentage of Oldfield Partners’ 13F Portfolio: 7.59%

Number of Hedge Fund Holders: 35

Middleby Corporation (NASDAQ:MIDD) is a specialty industrial equipment company that caters to the needs of the food and food services industry. It generated $992 million in revenue for Q2, a 7% sequential increase from Q1, with an adjusted EBITDA of $216 million (22% margin) driven by margin expansion in its commercial foodservice and food processing segments. Although the residential segment experienced a 6.7% organic revenue decline its margins improved from Q1, despite challenges in the housing market.

Middleby Corporation (NASDAQ:MIDD) achieved record operating cash flow for both Q2 and the first half of 2024, benefiting from normalized cash flows post-supply chain disruptions and reduced leverage over the past year. Despite lower Q2 revenues compared to the prior year, order trends were positive across all business segments. The commercial foodservice segment experienced a gradual increase in orders, though challenges like longer permitting times and economic pressures slowed the pace. The food processing business remains strong, with a pipeline of projects driven by customer needs for automation, labor reduction, and sustainability.

The residential segment continues to face difficulties due to the sluggish housing market, but luxury market improvements and new product launches are expected to support a gradual recovery. Despite cautious customer behavior, improved order conversions were noted in Q2. Looking ahead, Middleby expects sequential revenue growth across all segments in the second half of 2024, with the potential for year-over-year increases, particularly in food processing. Middleby Corporation (NASDAQ:MIDD) anticipates continued strength in order trends and improved financial performance as the year progresses.