5 Best Mid Cap Stocks To Buy In 2022

4. Skyline Champion Corporation (NYSE:SKY)

Market Capitalization as of February 15: $4.172 billion

Number of Hedge Fund Holders: 26

Skyline Champion Corporation (NYSE:SKY) is a leading North American homebuilder that provides manufactured homes, park-model RVs, and modular housing sectors, with customers including families, the working class, seniors, and the hospitality industry.

On February 2, Skyline Champion Corporation (NYSE:SKY) posted its Q4 results, reporting an EPS of $1.18, topping estimates by $0.45. Revenue for the period jumped 41.61% year-over-year to $534.69 million, outperforming estimates by $35.89 million. 

Craig-Hallum analyst Greg Palm lifted the price target on Skyline Champion Corporation (NYSE:SKY) to $111 from $103 and kept a Buy rating on the shares on February 4. According to the analyst, Skyline Champion Corporation (NYSE:SKY) will be a beneficiary of rising rates and inflation, and a higher stock price is supported by estimate revisions and valuation levels, despite tough overall market conditions. 

26 hedge funds were Skyline Champion Corporation (NYSE:SKY) in the third quarter of 2021, up from 23 funds in the quarter earlier. MAK Capital One was the leading Skyline Champion Corporation (NYSE:SKY) stakeholder as of Q3 2021, with 3 million shares worth $180 million. 

Here is what Wasatch Global Investors has to say about Skyline Champion Corporation (NYSE:SKY) in its Q2 2021 investor letter:

“Moreover, we think our high-quality companies are better able to deal with supply-chain challenges and raise prices while still maintaining or increasing market share in an inflationary environment. For example, Skyline Champion Corp. (SKY)—which constructs affordable homes and modular buildings—was able to raise prices continually as lumber costs rose. And now that lumber costs are falling, home prices are steady or increasing so the company’s margins are expanding. Skyline has most of the business characteristics that we find ideal, including: (1) strong revenue and earnings growth with continued headroom; (2) rising margins; (3) a reasonable stock price; and (4) significant potential over time for investors to pay higher and higher price/earnings multiples on the stock.”