Here’s Why The AZEK Company (AZEK) Gained 29% in Q4

TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” fourth-quarter investor letter. A copy of the same can be downloaded here. In the quarter the fund returned 9.15% (net), compared to a 12.75% return for the Russell 2000 Growth Index. For the year, the fund returned 15.96% (net) compared to 18.66% for the index. In addition, please check the fund’s top five holdings to know its best picks in 2023.

TimesSquare Capital U.S. Small Cap Growth Strategy featured stocks like The AZEK Company Inc. (NYSE:AZEK) in the fourth quarter 2023 investor letter. Headquartered in Chicago, Illinois, The AZEK Company Inc. (NYSE:AZEK) engages in the business of building products. On March 21, 2024, The AZEK Company Inc. (NYSE:AZEK) stock closed at $50.10 per share. One-month return of The AZEK Company Inc. (NYSE:AZEK) was 6.85%, and its shares gained 129.82% of their value over the last 52 weeks. The AZEK Company Inc. (NYSE:AZEK) has a market capitalization of $7.306 billion.

TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding The AZEK Company Inc. (NYSE:AZEK) in its fourth quarter 2023 investor letter:

“Similarly, there was a 29% gain from The AZEK Company Inc. (NYSE:AZEK), which we trimmed on its strength. This manufacturer of wood-alternative decking, railing, trim, and moulding reported better-than-expected revenues and earnings. There was particularly strong growth from residential sales—more than offsetting weaker non-residential sales. AZEK gained market share, projected future price increases, and bought back $61mn of its shares.”

A team of architects and engineers standing in front of a mid-construction commercial building.

The AZEK Company Inc. (NYSE:AZEK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, The AZEK Company Inc. (NYSE:AZEK) was held by 29 hedge fund portfolios, compared to 26 in the previous quarter, according to our database.

We discussed The AZEK Company Inc. (NYSE:AZEK) in another article and shared Mairs & Power Small Cap Fund’s views on the company. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.