Is Construction Partners (ROAD) a Recession-Proof Stock?

Wasatch Global Investors, an asset management company, released its “Wasatch Micro Cap Growth—U.S. Strategy” fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. The strategy declined and underperformed its benchmark, the Russell Microcap Index in the fourth quarter, which gained 4.72%. The disappointing returns in industrials, financials, and consumer discretionary were the primary source of the strategy’s weakness relative to the benchmark while consumer staples positively contributed to the performance. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Wasatch Micro Cap Growth—U.S. Strategy highlighted stocks like Construction Partners, Inc. (NASDAQ:ROAD) in its Q4 2022 investor letter. Headquartered in Dothan, Alabama, Construction Partners, Inc. (NASDAQ:ROAD) is an infrastructure company that engages in the construction and maintenance of roadways. On March 21, 2023, Construction Partners, Inc. (NASDAQ:ROAD) stock closed at $27.64 per share. One-month return of Construction Partners, Inc. (NASDAQ:ROAD) was 3.75%, and its shares gained 13.93% of their value over the last 52 weeks. Construction Partners, Inc. (NASDAQ:ROAD) has a market capitalization of $1.457 billion.

Wasatch Micro Cap Growth—U.S. Strategy made the following comment about Construction Partners, Inc. (NASDAQ:ROAD) in its Q4 2022 investor letter:

“Regarding long-term trends that we’d like the strategy to benefit from, it’s clear that U.S. infrastructure needs to be upgraded nationwide and that government spending has been prioritized accordingly. As a result, we’ve invested in companies that we think are recession-resistant such as Construction Partners, Inc. (NASDAQ:ROAD), which specializes in projects such as highways, bridges and airports. Moreover, any commodity price inflation that’s been incorporated in the company’s contracts may help improve margins going forward.”

States with the Best Roads in America

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Construction Partners, Inc. (NASDAQ:ROAD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 5 hedge fund portfolios held Construction Partners, Inc. (NASDAQ:ROAD) at the end of the fourth quarter which was 8 in the previous quarter.

We discussed Construction Partners, Inc. (NASDAQ:ROAD) in another article and shared Conestoga Capital Advisors’ views on the company. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.

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