Is ESAB Corporation (ESAB) a Recession Proof Stock?

Diamond Hill Capital, an investment management company, released its “Small Cap Strategy” fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund returned 6.98% net of fees, outperforming the benchmark Russell 2000 Index, which returned 6.23%. Strength in health care, consumer discretionary, and materials holdings contributed to the fund’s outperformance in the quarter while holdings in energy and information technology detracted from the performance.  In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Diamond Hill Capital highlighted stocks like ESAB Corporation (NYSE:ESAB) in the fourth quarter 2022 investor letter. Headquartered in North Bethesda, Maryland, ESAB Corporation (NYSE:ESAB) is a fabrication technology company. On January 26, 2023, ESAB Corporation (NYSE:ESAB) stock closed at $56.58 per share. One-month return of ESAB Corporation (NYSE:ESAB) was 20.59%, and its shares gained 20.59% of their value over the last 52 weeks. ESAB Corporation (NYSE:ESAB) has a market capitalization of $3.399 billion.

Diamond Hill Capital made the following comment about ESAB Corporation (NYSE:ESAB) in its Q4 2022 investor letter:

“Other top contributors included Enstar, ESAB Corporation (NYSE:ESAB) and Taseko Mines. Shares of runoff consolidator Enstar bounced back from a tough Q3. Enstar buys other companies’ non-core business lines and efficiently settles claims until the liabilities are exhausted. It has a proven ability to compound value over time and create value across cycles, and we believe it can continue to do so. Similarly, shares of fabrication technology company ESAB rebounded from a challenging Q3 as the business has fared better than feared amid a slowing macroeconomic environment — especially in Europe, where ESAB is the leader in welding.”

ESAB Corporation (NYSE:ESAB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held ESAB Corporation (NYSE:ESAB) at the end of the third quarter, which was 19 in the previous quarter.

We discussed ESAB Corporation (NYSE:ESAB) in another article and shared the best new tech stocks to buy. In addition, please check out our hedge fund investor letters Q4 2022 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.