5 Best New Tech Stocks to Buy Now

3. ESAB Corporation (NYSE:ESAB)

Number of Hedge Fund Holders: 24  

ESAB Corporation (NYSE:ESAB) engages in the formulation, development, manufacture, and supply of consumable products and equipment for use in cutting, joining, and automated welding, as well as gas control equipment. On October 17, ESAB Corp announced that it has acquired Ohio Medical, a global leader in oxygen regulators and central gas systems, from a private investor group for a cash purchase price of $127 million. The company also expects an additional cash tax benefit with a net present value of $15 million.

On October 11, Stifel analyst Nathan Jones maintained a Buy rating on ESAB Corporation (NYSE:ESAB) stock and lowered the price target to $42 from $48, highlighting that broad indicators and the company’s recent surveys suggest that short cycle industrial demand has weakened a bit.

At the end of the third quarter of 2022, 24 hedge funds in the database of Insider Monkey held stakes worth $138.4 million in ESAB Corporation (NYSE:ESAB), compared to 19 in the previous quarter worth $195.6 million. 

In its Q3 2022 investor letter, Diamond Hill Capital, an asset management firm, highlighted a few stocks and ESAB Corporation (NYSE:ESAB) was one of them. Here is what the fund said:

“Fabrication technology company ESAB Corporation (NYSE:ESAB) posted fairly solid quarterly results, but shares were pressured on concerns of an economic slowdown, particularly in Europe where ESAB is the leading welding player. A recession could be challenging for the company in the near term, but we believe the long-term outlook remains promising. We believe ESAB’s strong position in emerging markets can translate to solid growth over time, while the company’s continuous improvement focused business system can aid in margin expansion, helping it to expand into adjacent areas such as gas control and welding automation.”