Is Potlatchdeltic Corp (PCH) an Undervalued Stock?

Longleaf Partners, managed by Southeastern Asset Management, released its “Small-Cap Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned 1.50% in the first quarter, compared to the Russell 3000’s -4.72% return and the Russell 2000’s -9.48% decline. The portfolio performed well in a difficult quarter for small-cap stocks. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its first-quarter 2025 investor letter, Longleaf Partners Small-Cap Fund highlighted stocks such as PotlatchDeltic Corporation (NASDAQ:PCH). PotlatchDeltic Corporation (NASDAQ:PCH) is a Real Estate Investment Trust (REIT) that owns nearly 2.2 million acres of timberlands. The one-month return of PotlatchDeltic Corporation (NASDAQ:PCH) was 0.03%, and its shares lost 0.10% of their value over the last 52 weeks. On June 26, 2025, PotlatchDeltic Corporation (NASDAQ:PCH) stock closed at $39.35 per share, with a market capitalization of $3.093 billion.

Longleaf Partners Small-Cap Fund stated the following regarding PotlatchDeltic Corporation (NASDAQ:PCH) in its Q1 2025 investor letter:

“PotlatchDeltic Corporation (NASDAQ:PCH) – Timberland and mill company PotlatchDeltic was a contributor for the quarter. The company performed fine in the quarter even though housing demand remains below trend. We slightly trimmed our position as the company was viewed as a potential tariff winner. While not the most exciting company, PotlatchDeltic remains an undervalued, reliable dividend payer with a disciplined management team.”

10 Best Land and Timber Stocks to Buy According to Hedge Funds

Aerial view of a timberland with lush green trees and sunlight filtering through the branches.

PotlatchDeltic Corporation (NASDAQ:PCH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held PotlatchDeltic Corporation (NASDAQ:PCH) at the end of the first quarter, which was 22 in the previous quarter. While we acknowledge the potential of PotlatchDeltic Corporation (NASDAQ:PCH) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered PotlatchDeltic Corporation (NASDAQ:PCH) and shared Heartland Value Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of PCH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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