Should You Consider Buying Summit Materials (SUM) Shares?

Carillon Tower Advisers, an investment management firm, published its “Carillon Eagle Small Cap Growth Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. Small-cap stocks overall posted minor gains in the final quarter of 2021. In what has become a common theme, the Russell 2000® Growth Index (up 0.02%) trailed its Russell 2000® Value Index (up 4.36%) counterpart for the fifth consecutive quarter. Sector returns across the Russell 2000 Growth Index were mostly positive, with the defensively oriented utilities (up 14.18%) and real estate (up 13.94%) sectors leading the way. Industrials (up 9.73%), financials (up 9.05%), and consumer staples (up 5.67%) also provided returns that outpaced the benchmark. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Carillon Eagle Small Cap Growth Fund, in its Q4 2021 investor letter, mentioned Summit Materials, Inc. (NYSE: SUM) and discussed its stance on the firm. Summit Materials, Inc. is a Denver, Colorado-based integrated construction material company with a $4.1 billion market capitalization. SUM delivered a -12.95% return since the beginning of the year, while its 12-month returns are up by 41.57%. The stock closed at $34.76 per share on February 11, 2022.

Here is what Carillon Eagle Small Cap Growth Fund has to say about Summit Materials, Inc. in its Q4 2021 investor letter:

“Summit Materials is a vertically integrated construction materials-based company that supplies aggregates, cement, ready-mix concrete, and asphalt in the United States and British Columbia. Shares rose as the firm benefitted from both a healthy market demand environment and price growth across each of its lines of business. Summit also is the beneficiary of ongoing migration trends favoring construction activity in the exurban and rural markets that it primarily serves. Additionally, the recently passed federal infrastructure bill could also provide a source of future growth.”

Our calculations show that Summit Materials, Inc. (NYSE: SUM) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. SUM was in 21 hedge fund portfolios at the end of the third quarter of 2021, compared to 20 funds in the previous quarter. Summit Materials, Inc. (NYSE: SUM) delivered a -13.26% return in the past 3 months.

In November 2021, we published an article that includes SUM in the 10 Best Material Stocks To Buy Now. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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