What Makes PotlatchDeltic Corporation (PCH) Stock Attractive?

ClearBridge Investments, an investment management company, released its “ClearBridge Small Cap Strategy” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. The strategy outperformed the Russell 2000 Index in the fourth quarter. The strategy gained in eight of the eleven sectors it was invested in the quarter on an absolute basis. Industrials, IT, and financial sectors were the leading contributors while healthcare detracted from the performance. In addition, please check the fund’s top five holdings to know its best picks in 2022.

ClearBridge Small Cap Strategy highlighted stocks like PotlatchDeltic Corporation (NASDAQ:PCH) in the Q4 2022 investor letter. PotlatchDeltic Corporation (NASDAQ:PCH) is a Real Estate Investment Trust that owns timberlands. On February 27, 2023, PotlatchDeltic Corporation (NASDAQ:PCH) stock closed at $46.38 per share. One-month return of PotlatchDeltic Corporation (NASDAQ:PCH) was -5.25%, and its shares lost 14.05% of their value over the last 52 weeks. PotlatchDeltic Corporation (NASDAQ:PCH) has a market capitalization of $3.696 billion.

ClearBridge Small Cap Strategy made the following comment about PotlatchDeltic Corporation (NASDAQ:PCH) in its Q4 2022 investor letter:

“We also seized the opportunity to add PotlatchDeltic Corporation (NASDAQ:PCH), in the real estate sector. The company owns 1.8 million acres of timberland in the U.S. as well as six sawmills, an industrial-grade plywood mill and a rural timberland sales program. The stock has been weak since lumber prices peaked in 2022, creating an exceptionally compelling entry point far below the value of its net assets. We believe the company will be able to successfully navigate through a potential downturn in construction without meaningful impairment of its assets based on its strong balance sheet. Additionally, as PotlatchDeltic’s inventory of trees will increase in value over time, the company will benefit from delaying its harvesting activity until the market rebounds to a more attractive level.”

PotlatchDeltic Corporation (NASDAQ:PCH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held PotlatchDeltic Corporation (NASDAQ:PCH) at the end of the fourth quarter which was 28 in the previous quarter.

We discussed PotlatchDeltic Corporation (NASDAQ:PCH) in another article and shared the list of best lumber stocks to invest in. 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.