7 Cheap New Stocks To Invest In Now

3. Atmus Filtration Technologies Inc. (NYSE:ATMU)

Forward Price-to-Earnings Ratio: 17.97

Market Cap as of October 1: $3.13 billion

Number of Hedge Fund Holders: 44

Atmus Filtration Technologies Inc. (NYSE:ATMU) designs, manufactures and sells filtration products under the Fleetguard brand name in North America, Europe, South America, Asia, Australia, Africa, and internationally. The company offers fuel filters, lube filters, air filters, crankcase ventilation, hydraulic filters, coolants, and fuel additives, as well as other chemicals; fuel water separators, and other filtration systems.

To enhance product availability, the company is expanding its distribution network. Over 80% of its products are now handled through Atmus warehouses, and management anticipates that its entire product line will be distributed through this network by year’s end. However, Freight demand remains sluggish, but strong performance in other segments is mitigating market weakness. While US demand is decelerating, India continues to show strength, and China remains slow.

Despite challenges, Q2 2024 revenue increased by 4.59% year-over-year, primarily driven by a 3% increase in sales volume and pricing adjustments of ~2%. Lower commodity costs and strong operational execution contributed to improved sales, gross margin, and adjusted EBITDA.

On August 7, Stephen Macadam, director at the company, bought 8,250 shares of Atmus Filtration Technologies Inc. (NYSE:ATMU), now owning a total of 32,083 shares. Later, on August 23, director Gretchen Haggerty also bought 5,849 shares, now owning a total of 19,881,803 shares.

Atmus Filtration Technologies Inc. (NYSE:ATMU) is capitalizing on partnerships with industry leaders, securing new vehicle platforms that meet the 2027 US EPA emission standards. The company’s leadership in fuel filtration and crankcase ventilation, coupled with its focus on aftermarket expansion, sets it up for ongoing success.