Anchor Capital Management’s Top 5 Stock Picks in 2024

2. Patrick Industries, Inc. (NASDAQ:PATK)

Value of Anchor Capital Management’s 13F Position (3/31/2024): $14.8 million

Number of Hedge Fund Shareholders (12/31/2023): 17

Ranking second among Anchor Capital Management’s top stock picks for 2024 is Patrick Industries, Inc. (NASDAQ:PATK), a manufacturer and supplier of laminated and other products and components for the RV, homebuilding and industrial markets. The fund raised its stake in PATK by 20% during the first quarter to 123,809 shares.

Patrick Industries, Inc. (NASDAQ:PATK) posted solid Q1 results, earning $1.59 per share for the quarter, up from $1.35 a year earlier and well ahead of the $1.32 average expected by analysts. That represents an important turnaround step for the company after its earnings sank to $6.78 in 2023 from nearly $15 in 2022. Revenue rose by 3.7% year-over-year to $933.5 million.

The company is bullish on its future growth potential in the RV and manufactured homebuilding spaces, and expects its marine segment, which suffered a 35% year-over-year revenue decline to $155 million in Q1, to rebound in the second half of 2024.

Truist Financial analyst Michael Swartz has a ‘Buy’ rating and $130 price target on Patrick Industries, Inc. (NASDAQ:PATK), representing 14.5% upside potential based on the current share price.