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Weis Markets (WMK) Has Risen 26% in Last One Year, Outperforms Market

If you are looking for the best ideas for your portfolio you may want to consider some of Palm Valley Capital Management’s top stock picks. Palm Valley Capital, an investment management firm, is bullish on Weis Markets Inc (NYSE:WMK) stock. In its Q2 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on Weis Markets Inc (NYSE:WMK) stock. Weis Markets Inc (NYSE:WMK) operates a conventional supermarket chain.

On July 1, 2019, Palm Valley Capital had released its Q2 2019 investor letter. The investment firm said that Weis Markets Inc (NYSE:WMK) was one of the ten equities that the fund held in Q2 2019. The stock has posted a return of 26.3% in the trailing one year period, outperforming fund’s benchmark the S&P Small Cap 600 Index which returned -2.2% in the same period. This suggests that the investment firm was right in its decision. On a year-to-date basis, Weis Markets Inc (NYSE:WMK) stock has risen by 18.5%.

Palm Valley Capital fund posted a return of 0.7% from April 30, 2019 through June 30, 2019, outperforming fund’s benchmark the S&P Small Cap 600 Index which returned -1.9% in the same period. Let’s take a look at comments made by Palm Valley Capital about Weis Markets Inc (NYSE:WMK) in the Q2 2019 investor letter.

“Weis Markets operates 200 grocery stores in Pennsylvania and surrounding states. The company has a very strong balance sheet with no debt and $90 million in cash and marketable securities. Weis also owns 95 of its stores, a 1.3 million square foot distribution center, an ice cream plant, and a meat processing facility. Weis’s strong balance sheet has provided it with the flexibility to act opportunistically within its highly competitive industry. For example, in 2016 the company acquired five Mars Super Market locations and 38 Food Lion stores, resulting in a gain on bargain purchase of $24 million. Weis Markets currently sells at a discount to tangible book value, provides a 3.4% dividend yield, and has consistently generated free cash flow over the past decade.”

Pixabay/Public Domain

In May, we published an article revealing Palm Valley Capital’s bullish investment thesis on Weis Markets Inc (NYSE:WMK) stock in its Q1 2020 investor letter. This suggests that the investment firm has been bullish for a long time on Weis Markets Inc (NYSE:WMK).

In Q1 2020, the number of bullish hedge fund positions on Weis Markets Inc (NYSE:WMK) stock remained unchanged from the previous quarter (see the chart here). Our calculations showed that Weis Markets Inc (NYSE:WMK) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we scour multiple sources to uncover the next great investment idea. We go through lists like the 10 most profitable companies in America to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. You can subscribe to our free enewsletter below to receive our stories in your inbox:

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