5 Stocks to Buy in 2022 According to John Rogers’ Ariel Investments

In this article, we will discuss 5 Stocks to Buy in 2022 According to John Rogers’ Ariel Investments. For the full list and the investment strategy of Ariel Investments, head on to 10 Stocks to Buy in 2022 According to John Rogers’ Ariel Investments.

5. Patterson Companies, Inc. (NASDAQ:PDCO)

Ariel Investments stake value: $154,000

Number of Hedge Fund Holders: 20

Patterson Companies, Inc. (NASDAQ:PDCO) is a leading medical supplies company. The company primarily serves the United States and Canada by providing dentistry and veterinary practice management tools. Patterson Companies, Inc. (NASDAQ:PDCO) was a new addition to Ariel Investments’ portfolio as the fund acquired 5,073 shares of the company during Q2 2022 amounting to $154,000.

Here is what Heartland Advisors has to say about Patterson Companies, Inc. (NASDAQ:PDCO) in its Q2 2021 investor letter:

“Patterson Companies Inc. (PDCO) is a leading distributor of dental and animal health products. Sales have been on the rise and the company reported a record $6.1 billion in revenue for the year ending in April. Shares of the business are up double digits through the first half of the year, and the holding has been a solid contributor to performance.

Management at Patterson has done an impressive job of expanding operating margins and making strategic acquisitions that have fit with the business’ core competencies since coming aboard in 2017. However, shares set back late in the quarter, after the company reported better than expected earnings but issued guidance that was more conservative than Wall Street expectations. Due to the ongoing unwinding of pent-up demand in dental services and the strength of Patterson’s animal health line, we believe recent earnings guidance will prove to be overly cautious. We view recent softness in shares of Patterson as an overreaction and remain constructive on this industry leader that is priced at just .5X sales.”

At the end of Q2 2022, 20 hedge funds tracked by Insider Monkey owned stakes in Patterson Companies, Inc. (NASDAQ:PDCO).