In this article, we will discuss 5 Stocks to Buy in 2022 According to John Rogers’ Ariel Investments. For the full list and the investment strategy of Ariel Investments, head on to 10 Stocks to Buy in 2022 According to John Rogers’ Ariel Investments.
5. Patterson Companies, Inc. (NASDAQ:PDCO)
Ariel Investments stake value: $154,000
Number of Hedge Fund Holders: 20
Patterson Companies, Inc. (NASDAQ:PDCO) is a leading medical supplies company. The company primarily serves the United States and Canada by providing dentistry and veterinary practice management tools. Patterson Companies, Inc. (NASDAQ:PDCO) was a new addition to Ariel Investments’ portfolio as the fund acquired 5,073 shares of the company during Q2 2022 amounting to $154,000.
Here is what Heartland Advisors has to say about Patterson Companies, Inc. (NASDAQ:PDCO) in its Q2 2021 investor letter:
“Patterson Companies Inc. (PDCO) is a leading distributor of dental and animal health products. Sales have been on the rise and the company reported a record $6.1 billion in revenue for the year ending in April. Shares of the business are up double digits through the first half of the year, and the holding has been a solid contributor to performance.
Management at Patterson has done an impressive job of expanding operating margins and making strategic acquisitions that have fit with the business’ core competencies since coming aboard in 2017. However, shares set back late in the quarter, after the company reported better than expected earnings but issued guidance that was more conservative than Wall Street expectations. Due to the ongoing unwinding of pent-up demand in dental services and the strength of Patterson’s animal health line, we believe recent earnings guidance will prove to be overly cautious. We view recent softness in shares of Patterson as an overreaction and remain constructive on this industry leader that is priced at just .5X sales.”
At the end of Q2 2022, 20 hedge funds tracked by Insider Monkey owned stakes in Patterson Companies, Inc. (NASDAQ:PDCO).
4. Motorola Solutions, Inc. (NYSE:MSI)
Ariel Investments stake value: $174,000
Number of Hedge Fund Holders: 31
Motorola Solutions, Inc. (NYSE:MSI) is a global communications and analytics company. The majority of the company’s revenue is generated by sales of mobile radios. Ariel Investments bought 829 shares of the company during Q2 2022, amounting to $174,000.
Here is what ClearBridge Investments Large Cap Value Strategy has to say about Motorola Solutions, Inc. (NYSE:MSI) in its Q4 2021 investor letter:
“The ClearBridge Large Cap Value Strategy outperformed for the year, driven in part by long-term holdings within the IT sector such as Motorola Solutions. Motorola Solutions (MSI), a leading provider of mission-critical communications products and services with more than 100,000 public safety and commercial customers in 100 countries, continues to execute at a very high level. It is leveraging its strong competitive position to expand its addressable market through targeted tuck-in acquisitions in areas such as video and command-to-control centers.”
At the end of Q2 2022, 31 hedge funds tracked by Insider Monkey owned stakes in Motorola Solutions, Inc. (NYSE:MSI).
3. The Hackett Group, Inc. (NASDAQ:HCKT)
Ariel Investments stake value: $106,000
Number of Hedge Fund Holders: 15
The Hackett Group, Inc. (NASDAQ:HCKT) is an advisory firm which provides business transformation, executive advisory and cloud implementation services to businesses. A major source of the company’s revenues is generated in the United States. John Rogers’ fund bought 5,580 shares of the company during Q2 2022.
The Hackett Group, Inc. (NASDAQ:HCKT) announced solid results for the second quarter of 2022 and reported revenue of $75.93 million, up 3.73% YoY. The company posted a normalized EPS of $0.38, beating the market consensus estimate by $0.04. The company also declared a dividend of $0.11/share, in line with the previous dividend and payable to shareholders on October 7.
At the end of Q2 2022, 15 hedge funds tracked by Insider Monkey owned stakes in HCKT.
2. Generac Holdings Inc. (NYSE:GNRC)
Ariel Investments stake value: $189,000
Number of Hedge Fund Holders: 34
Established in 1959, Generac Holdings Inc. (NYSE:GNRC) designs and manufactures power generation. The company offers standby generators and a wide range of clean energy products. Generac Holdings Inc. (NYSE:GNRC) was a new addition to Ariel Investments’ portfolio as the fund acquired 896 shares of the company during Q2 2022 amounting to $189,000.
Generac Holdings Inc. (NYSE:GNRC) reported solid result for Q2 2022 with revenue of $1.29 billion, up 40.37% YoY. The company posted a normalized EPS of $2.999, beating the market consensus estimate by $0.36.
At the end of Q2 2022, 34 hedge funds tracked by Insider Monkey owned stakes in Generac Holdings Inc. (NYSE:GNRC).
1. Dun & Bradstreet Holdings, Inc. (NYSE:DNB)
Ariel Investments stake value: $150,000
Number of Hedge Fund Holders: 25
Dun & Bradstreet Holdings, Inc. (NYSE:DNB) is a global company which provides decision data and analytics to businesses. Dun & Bradstreet Holdings, Inc. (NYSE:DNB) was a new addition to Ariel Investments’ portfolio as the fund acquired 9,984 shares of the company during Q2 2022, amounting to $150,000
Dun & Bradstreet Holdings, Inc. (NYSE:DNB) was mentioned by Weitz Investments in its Q4 2021 investor letter. Here is what it said:
“In the second half of the year, resurgent inflation and higher interest rate fears reined in investor appetite for higher-growth assets trading at premium multiples… We also note that our investment thesis has always contemplated a higher-interest-rate environment. While this rotation may reasonably bring some market “highflyers” back to Earth, we continue to watch for opportunities to add to these terrific businesses should further pressure yield attractive prices. Finally, this year’s new investment in Dun & Bradstreet has been off to a slow start. Less than one year into our ownership, we remain encouraged by the progress management has made in returning the business to organic growth, and we believe our patience will ultimately be rewarded.”
At the end of Q2 2022, 25 hedge funds tracked by Insider Monkey owned stakes in Dun & Bradstreet Holdings, Inc. (NYSE:DNB).
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