Is OneSpaWorld Holdings Limited (OSW) a Fundamentally Strong Stock?

Ariel Investments, an investment management company, released its “Ariel Small-Cap Value Concentrated Fund” third-quarter investor letter. A copy of the same can be downloaded here. In the third quarter, the fund declined by -7.34% gross of fees, underperforming the Russell 2000 Value Index, which returned -4.61%, and the Russell 2000 Index, which returned -2.19%. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Ariel Investment highlighted stocks like OneSpaWorld Holdings Limited (NASDAQ:OSW) in the Q3 2022 investor letter. Headquartered in Nassau, Bahamas, OneSpaWorld Holdings Limited (NASDAQ:OSW) is a global wellness and health center operator at destination resorts and on cruise ships. On December 2, 2022, OneSpaWorld Holdings Limited (NASDAQ:OSW) stock closed at $10.20 per share. One-month return of OneSpaWorld Holdings Limited (NASDAQ:OSW) was 3.40%, and its shares gained 2.23% of their value over the last 52 weeks. OneSpaWorld Holdings Limited (NASDAQ:OSW) has a market capitalization of $943.25 million.

Ariel Investment made the following comment about OneSpaWorld Holdings Limited (NASDAQ:OSW) in its Q3 2022 investor letter:

“Wellness provider onboard cruise ships and destination resorts, OneSpaWorld Holdings Limited (NASDAQ:OSW) was the top contributor in the quarter. Strong earnings results, highlighted by a top and bottom-line beat, as well as the delivery of positive free cash flow for the first time since the pandemic began drove share price appreciation. Looking ahead, we expect OSW’s spa services to continue to be met with high demand and spend levels, particularly as onboard occupancy increases over time. With adequate liquidity and shares trading at a -44% discount to our estimate of private market value, we see the risk/reward skewed sharply to the upside.”

OneSpaWorld Holdings Limited (NASDAQ:OSW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 11 hedge fund portfolios held OneSpaWorld Holdings Limited (NASDAQ:OSW) at the end of the third quarter, which was 8 in the previous quarter.

We discussed OneSpaWorld Holdings Limited (NASDAQ:OSW) in another article and shared best cruise stocks to invest in. In addition, please check out our hedge fund investor letters Q3 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.