5 Best Small-Cap Stocks to Buy According to Hedge Funds

2. Turning Point Brands, Inc. (NYSE: TPB)

Market Cap: $925.3 million
Number of Hedge Fund Holders: 33

Turning Point Brands, Inc. (NYSE: TPB) is an American tobacco company founded in 2004. The company manufactures, markets, and distributes smoking accessories and consumables through its brands Zig-Zag and Stoker’s. The products of Turning Point Brands, Inc. (NYSE: TPB) are available at over 210,000 retail stores in America.

Turning Point Brands, Inc. (NYSE: TPB) reported stronger earnings in Q2 2021. The company reported a net income of $15.4 million, up 49.2% from the prior-year quarter. The EPS stood at $0.84, beating the market estimate by $0.19. Turning Point Brands, Inc. (NYSE: TPB) generated revenue of $122.6, presenting 16.8% year-over-year growth. For FY21, the company expects net sales in between $447 million to $462 million. In July, the company’s earnings were lauded by B. Riley as the firm lifted its price target on Turning Point Brands, Inc. (NYSE: TPB) to $65, with a ‘Buy’ rating on the shares. Turning Point Brands, Inc. (NYSE: TPB) gained 63.1% in the past year.

Hedge funds are investing in Turning Point Brands, Inc. (NYSE: TPB), as in Q1 2021, 33 funds have positions in the company, compared with 27 in the previous quarter.

Maran Capital Management recently published its second-quarter 2021 investor letter and mentioned Turning Point Brands, Inc. (NYSE: TPB) in it. Here is what the firm has to say:

“We continue to hold core positions in previously disclosed companies (including) Turning Point Brands (TPB). Turning Point Brands remains cheap given its organic growth profile, low capital intensity, and large collection of small, asymmetric bets in vaping and active ingredients. TPB’s Zig Zag brand is among the most well-positioned brands in the US as cannabis legalization marches forward, jurisdiction by jurisdiction.”