Do You Think Recession Fears Affected ESAB Corporation (ESAB)?

Diamond Hill Capital, an investment management company, released its “Small Cap Strategy” third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the strategy returned -1.50% net of fees compared to a -2.19% return for the Russell 2000 Index. Investment in consumer staples, technology, and financial sectors contributed positively to the strategy’s performance. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Diamond Hill Capital discussed stocks like ESAB Corporation (NYSE:ESAB) in the Q3 2022 investor letter. Based in Wilmington, Delaware, ESAB Corporation (NYSE:ESAB) is a fabrication technology company. On October 24, 2022, ESAB Corporation (NYSE:ESAB) stock closed at $35.52 per share. One-month return of ESAB Corporation (NYSE:ESAB) was 7.02% and in three months its shares lost 12.32% of their value. ESAB Corporation (NYSE:ESAB) has a market capitalization of $2.133 billion.

Diamond Hill Capital made the following comment about ESAB Corporation (NYSE:ESAB) in its Q3 2022 investor letter:

“Fabrication technology company ESAB Corporation (NYSE:ESAB) posted fairly solid quarterly results, but shares were pressured on concerns of an economic slowdown, particularly in Europe where ESAB is the leading welding player. A recession could be challenging for the company in the near term, but we believe the long-term outlook remains promising. We believe ESAB’s strong position in emerging markets can translate to solid growth over time, while the company’s continuous improvement focused business system can aid in margin expansion, helping it to expand into adjacent areas such as gas control and welding automation.”

Andrey Armyagov/Shutterstock.com

ESAB Corporation (NYSE:ESAB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held ESAB Corporation (NYSE:ESAB) at the end of the second quarter, which was 0 in the previous quarter.

We discussed ESAB Corporation (NYSE:ESAB) in another article and shared Diamond Hill Capital’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

Suggested Articles:

• 10 Cheap Defense Stocks To Buy
• 11 Best High Beta Stocks To Buy Now
• 10 Biggest Car Companies In the World By Sales

Disclosure: None. This article is originally published at Insider Monkey.