Is Saia, Inc. (SAIA) A Good Long-Term Investment?

Wedgewood Partners, an investment management company, released its “Focused SMID Cap Strategy” second quarter 2022 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund returned -14.1% compared to a return of -17.0% for the Russell 2500 Index. Since inception, the fund returned 10.3% compared to 4.9% for its benchmark index. In addition, please check the fund’s top five holdings to know its best picks in 2022.

In the second quarter 2022 investor letter, Wedgewood Partners discussed stocks like Saia, Inc. (NASDAQ:SAIA). Headquartered in Johns Creek, Georgia, Saia, Inc. (NASDAQ:SAIA) is a transportation company. On September 28, 2022, Saia, Inc. (NASDAQ:SAIA) stock closed at $199.23 per share. One-month return of Saia, Inc. (NASDAQ:SAIA) was -5.12% and its shares lost 16.30% of their value over the last 52 weeks. Saia, Inc. (NASDAQ:SAIA) has a market capitalization of $5.262 billion.

Here is what Wedgewood Partners specifically said about Saia, Inc. (NASDAQ:SAIA) in its Q2 2022 investor letter:

“Saia, Inc. (NASDAQ:SAIA) was a top detractor from performance despite posting a nearly +20% increase in revenue (excluding fuel surcharges) and more than doubling operating income on a record-low first quarter operating ratio of 84.4. Saia is a best-in-class operator that should be able to drive a long-term operating ratio into the 70’s. In addition, Saia’s increased investments in capacity should allow the Company to post attractive growth throughout economic cycles. After a dramatic pullback in shares year to date, we added to positions during the quarter as we think the market has overshot on pricing in a downturn in Saia’s business.”

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Saia, Inc. (NASDAQ:SAIA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held Saia, Inc. (NASDAQ:SAIA) at the end of the second quarter which was 27 in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.

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