5 Small-Cap Stocks to Buy During Recessions

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1. Vista Outdoor Inc. (NYSE:VSTO)

Number of Hedge Fund Holders: 21

Market Cap as of May 25: $2.1 billion

Vista Outdoor Inc. (NYSE:VSTO) markets consumer products in the sports and recreation sector. In early May, the company announced that the board of directors had agreed to a plan to seperate the outdoors and sports units into two separate entities. The tax-free spinoff is expected to be complete by 2023 and will have advantages like enhanced strategic focus, expanded strategic opportunities, and tailored capital allocation priorities, according to a statement made by the company. 

In early February, Roth Capital analyst Matt Koranda maintained a Buy rating on Vista Outdoor Inc. (NYSE:VSTO) stock and lowered the price target to $57 from $61, backing the firm to “continue to benefit from a sustained ammo up-cycle for the next few quarters”. 

At the end of the first quarter of 2022, 21 hedge funds in the database of Insider Monkey held stakes worth $326 million in Vista Outdoor Inc. (NYSE:VSTO), compared to 25 in the preceding quarter worth $460 million. 

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Gates Capital Management is a leading shareholder in Vista Outdoor Inc. (NYSE:VSTO), with 5.4 million shares worth more than $195 million. 

In its Q2 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Vista Outdoor Inc. (NYSE:VSTO) was one of them. Here is what the fund said:

“Our Strategy outperformed with strong results from consumer discretionary stocks like Vista Outdoor Inc. (NYSE:VSTO). Vista Outdoor Inc. (NYSE:VSTO), a manufacturer of a wide range of products serving the outdoor sports and recreation markets, also performed well in the period on continued demand and growing margins.”

You can also take a peek at 12 Best Environmental Stocks to Invest In and 10 Best Nickel Stocks to Buy Now.

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