Is it Still a Good Move to Invest in Oil-Dri Corp. (ODC)?

Palm Valley Capital Management, an investment management firm, published its third-quarter 2022 investor letter – a copy of which can be downloaded here. A quarterly portfolio return of -1.83% was recorded by the fund for the third quarter of 2022, while its benchmarks, the S&P SmallCap 600 Index, by comparison, returned -5.20%, and -3.75% return for the Morningstar Small Cap Index over the same period. Try to spare some time to check the fund’s top 5 holdings for you to have an idea about their best stock picks this 2022.

In its Q3 2022 investor letter, Palm Valley Capital Management mentioned Oil-Dri Corporation of America (NYSE:ODC) and explained its insights for the company. Founded in 1941, Oil-Dri Corporation of America (NYSE:ODC) is a Chicago, Illinois-based specialty sorbent products manufacturer and supplier with a $166.8 million market capitalization. Oil-Dri Corporation of America (NYSE:ODC) delivered a -29.12% return since the beginning of the year, while its 12-month returns are down by -33.71%. The stock closed at $23.20 per share on October 12, 2022.

Here is what Palm Valley Capital Management has to say about Oil-Dri Corporation of America (NYSE:ODC) in its Q3 2022 investor letter:

“The three positions that had the greatest negative impact on the Fund during the third quarter includes Oil Dri (ticker: ODC). Oil Dri delivered decent second quarter earnings, but margins remain below normal as the firm suffers from elevated costs for energy, packaging, and transportation. Oil-Dri has actively raised prices this year, and we expect operating margins to continue to improve through the remainder of 2022.”

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Our calculations show that Oil-Dri Corporation of America (NYSE:ODC) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Oil-Dri Corporation of America (NYSE:ODC) was in 5 hedge fund portfolios at the end of the second quarter of 2022, compared to 3 funds in the previous quarter. Oil-Dri Corporation of America (NYSE:ODC) delivered a -26.11% return in the past 3 months.

In August 2021, we published an article that includes Oil-Dri Corporation of America (NYSE:ODC) in 10 Russell 2000 Basic Materials Dividend Stocks to Buy. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q3 page.

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