5 Best 52-Week Low Small-Cap Stocks to Buy Now

In this article, we discuss the 5 best 52-week low small-cap stocks to buy now. If you want to read our discussion on the overall economic environment in the US, go to the 10 Best 52-Week Low Small-Cap Stocks to Buy Now.

5. Holley Inc. (NYSE:HLLY)

Number of Hedge Fund Holders: 15

Holley Inc. (NYSE:HLLY) is a Bowling Green, Kentucky-based automotive performance company that was founded in 1896. The company specializes in advanced fuel-system designs through its market-leading electronic fuel injection (EFI) products.

In a research note issued to investors on August 12, Michael Swartz at Truist gave Holley Inc. (NYSE:HLLY) stock a target price of $10 and reiterated a Buy rating on the stock. The target price assumes a potential upside of over 75% from the closing price as of September 15. The analyst agreed that the company’s Q2 2022 results were not “pretty.” However, the challenges faced by Holley Inc. (NYSE:HLLY) during the three months was temporary and should not impact the long-term outlook of the company. The analyst maintains a bullish stance on Holley Inc. (NYSE:HLLY) stock and recommends it to investors with a long-term investment horizon.

Here’s what Wasatch Global Investors said about Holley Inc. (NYSE:HLLY) in its Q2 2022 investor letter:

“Another contributor was Holley, Inc., which designs, manufactures and sells high- performance automotive parts for car and truck enthusiasts. The company’s loyal customer base, healthy margins and specialized product offerings have enabled it to pass along higher costs and better withstand the impacts of inflation— especially compared to other businesses that lack the same pricing power. Investors reacted positively to Holley’s most recent round of acquisitions, which are expected to help unlock new and large markets of strategic importance to the company. Holley’s latest earnings report confirmed its organic growth profile, further underpinning confidence in the company’s future prospects. Holley is a former special-purpose acquisition company (SPAC), and there have been general concerns over SPACs because they usually issue warrants (options to purchase stock at a fixed price) that can dilute shareholder ownership down the road. For our part, we factor potential dilution into our analysis whenever we invest in a former SPAC. Regarding Holley specifically, last year we maintained our positive outlook for the company and we were rewarded in the first quarter of 2022.”

Overall, 15 hedge funds reported owning a stock in Holley Inc. (NYSE:HLLY) at the end of Q2 2022.