Should You Consider Buying L.B. Foster (FSTR) Shares?

Sterling Partners Equity Advisors, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be seen here. The Fund owns well-capitalized companies that earn good returns over cycles. They sell differentiated products and services that serve a niche, with a “moat” to quote Morningstar, and the fund buys them at what they believe are attractive prices. The fund will be looking for more of them in 2022. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Sterling Partners Equity Advisors, in its Q4 2021 investor letter, mentioned L.B. Foster Company (NASDAQ:FSTR) and discussed its stance on the firm. Founded in 1902, L.B. Foster Company (NASDAQ:FSTR) is a Pittsburgh, Pennsylvania-based railroad equipment company with a $169.1 million market capitalization, and is currently spearheaded by its CEO, Robert P. Bauer. L.B. Foster Company (NASDAQ:FSTR) delivered a 13.60% return since the beginning of the year, while its 12-month returns are down by -11.05%. The stock closed at $15.70per share on March 25, 2022.

Here is what Sterling Partners Equity Advisors has to say about L.B. Foster Company (NASDAQ:FSTR) in its Q4 2021 investor letter:

L.B. Foster is a manufacturer and distributor of transportation and energy infrastructure products and services with locations in North America and Europe. This has been a very long-term holding on the thesis of a growing share of rail and pipelines in transportation and FSTR’s low-cost manufacturer role in the supply chain. During the quarter, management reported increased Q2 revenues substantially driven by strength in the rail, precast concrete products, and fabricated steel markets. Backlog increased by 12.4% compared to the prior year quarter driven by the significant increase in the infrastructure solutions segment.”

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Our calculations show that L.B. Foster Company (NASDAQ:FSTR) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. L.B. Foster Company (NASDAQ:FSTR) was in 11 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 13 funds in the previous quarter. L.B. Foster Company (NASDAQ:FSTR) delivered an 84.02% return in the past 3 months. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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