Is Steven Madden (SHOO) an Attractive Investment Opportunity?

Wedgewood Partners, an investment management company, released its “Focused SMID Cap Strategy” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund returned -5.3% compared to a return of -2.8% for the Russell 2500 Index. Since inception, the fund returned 8.2% compared to 5.4% for its benchmark index. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Wedgewood Partners highlighted stocks like Steven Madden, Ltd. (NASDAQ:SHOO) in the Q3 2022 investor letter. Headquartered in Long Island City, New York, Steven Madden, Ltd. (NASDAQ:SHOO) is a fashion brand that designs and sources private-label footwear and accessories. On November 3, 2022, Steven Madden, Ltd. (NASDAQ:SHOO) stock closed at $29.19 per share. One-month return of Steven Madden, Ltd. (NASDAQ:SHOO) was 6.07% and its shares lost 41.35% of their value over the last 52 weeks. Steven Madden, Ltd. (NASDAQ:SHOO)  has a market capitalization of $2.306 billion.

Wedgewood Partners made the following comment about Steven Madden, Ltd. (NASDAQ:SHOO) in its Q3 2022 investor letter:

Steven Madden, Ltd. (NASDAQ:SHOO) continued to reap the benefits of its competitively advantaged supply chain and generated a sterling +35% increase in revenue with similar growth in earnings per share. Many retail vendors have been struggling to replenish their own stores, let alone wholesale customers with inventory, but Steve Madden has done an excellent job fulfilling customer needs and is able to take ample pricing as a result. Many of the Company’s smaller competitors cannot meet demand as they were hobbled, if not completely wiped out, by the Pandemic induced shutdowns over the past few years. As economies continue to re-open, Steve Madden should continue to compound its market share gains at increasingly attractive returns, not unlike how the industry evolved in the aftermath of the 2008-2009 financial crisis. With the stock trading at a multi-decade low forward earnings multiple, we continue to view shares as an attractive opportunity.”

Steven Madden, Ltd. (NASDAQ:SHOO) is not  on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held Steven Madden, Ltd. (NASDAQ:SHOO)  at the end of the second quarter, which was 24 in the previous quarter.

We discussed Steven Madden, Ltd. (NASDAQ:SHOO) in another article and shared the list of world-class shoe stocks to buy. 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.