5 Small Cap Stocks With Wide Moats

2. XPEL Inc. (NASDAQ:XPEL)

Number of Hedge Fund Holders: 13

Market Capitalization as of December 27: $1.62 billion

XPEL Inc. (NASDAQ:XPEL) is an auto parts and equipment company based in San Antonio, Texas. It manufactures and distributes after-market automotive products.

The company is leading the market with its well-built brand, ensuring that it cannot be replicated. XPEL Inc. (NASDAQ:XPEL) commands a large total addressable market in North America because of the sheer number of automobiles in the area. Jay Capital expects XPEL Inc. (NASDAQ:XPEL) to see revenue growth between the company’s 2022 guidance of 25% to 28% by the end of this year.

In total, 13 hedge funds were long XPEL Inc. (NASDAQ:XPEL) in the third quarter. Their total stake value was $123 million.

Wasatch Global Investors, an asset management company, mentioned XPEL Inc. (NASDAQ:XPEL) in its third-quarter 2022 investor letter. Here’s what the firm said:

“XPEL, Inc. (NASDAQ:XPEL) also contributed. The company manufactures and distributes automotive paint and surface-protection films, window films, and ceramic coatings. XPEL benefits as buyers of luxury vehicles adopt products previously sold primarily to automotive enthusiasts. The stock had been down in the first half of 2022 as investors wrestled with concerns over supply-chain pressures and difficulties facing consumers. However, we continued to have confidence in XPEL’s management team and business model. We thought the company would withstand temporary challenges and was still on track to produce the growth we had expected over the long term. During the third quarter, we were gratified as the stock rebounded based on strong earnings that defied the negative trend for many consumer-oriented businesses.”