5 Best New Stocks to Buy According to Hedge Funds

4. ESAB Corporation (NYSE:ESAB)

Number of Hedge Fund Holders: 19  

ESAB Corporation (NYSE:ESAB) provides business-to-business (B2B) travel services. It is one of the top IPO stocks to invest in. In the past few months, the innovation driven technology growth company has successfully completed a previously announced separation from its fabrication technology business into an independent public trade company known as ESAB.

On September 12, Baird analyst Mircea Dobre initiated coverage of ESAB Corporation  (NYSE:ESAB) stock with an Outperform rating and a $53 price target, noting that the company faces near-term macro headwinds. 

At the end of the second quarter of 2022, 19 hedge funds in the database of Insider Monkey held stakes worth $195.6 million in ESAB Corporation (NYSE:ESAB).

In its Q2 2022 investor letter, Diamond Hill Capital Management, an asset management firm, highlighted a few stocks and ESAB Corporation (NYSE:ESAB) was one of them. Here is what the fund said:

“ESAB Corporation (NYSE:ESAB) and Enovis Corporation are both new names in the portfolio, but familiar to us through our prior holding in Colfax Corporation, a provider of orthopedic solutions including braces and reconstructive joint products as well as welding equipment and supplies. Early in Q2, Colfax completed a planned split — its fabrication technology business became ESAB and the medical technology business reorganized as Enovis. ESAB has removed Russia from its guidance for 2022, and we continue to hold both, believing the two new companies are in an excellent position to leverage their business systems to continuously improve operations over time and engage in value-creating acquisitions in their respective industries.”