What Makes CSW Industries (CSWI) an Attractive Investment Option?

Conestoga Capital Advisors, an asset management company, released its “Small Cap Strategy” third-quarter 2023 investor letter. A copy of the same can be downloaded here. The Small Cap Composite returned -6.72% net-of-fees in the third quarter, compared to the Russell 2000 Growth Index’s -7.32% return. The strategy’s outperformance was driven by positive stock selection effects, while sector allocation effects were modestly negative. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Conestoga Small Cap Composite highlighted stocks like CSW Industrials, Inc. (NASDAQ:CSWI) in the third quarter 2023 investor letter. Headquartered in Dallas, Texas, CSW Industrials, Inc. (NASDAQ:CSWI) is a diversified industrial company. On November 14, 2023, CSW Industrials, Inc. (NASDAQ:CSWI) stock closed at $179.73 per share. One-month return of CSW Industrials, Inc. (NASDAQ:CSWI) was 3.42%, and its shares gained 51.40% of their value over the last 52 weeks. CSW Industrials, Inc. (NASDAQ:CSWI) has a market capitalization of $2.795 billion.

Conestoga Small Cap Composite made the following comment about CSW Industrials, Inc. (NASDAQ:CSWI) in its Q3 2023 investor letter:

“CSW Industrials, Inc. (NASDAQ:CSWI): Based in Dallas, TX, CSWI is focused on niche, value added products. Over the last seven years CSWI, through mergers, acquisitions and some divestitures, has transformed itself from a diversified industrial company into a business heavily tied to residential HVAC maintenance and repair (55% of sales vs. 24% in fiscal 2016). We see this as an underfollowed, earnings compounder with high market share in a stable growth repair -and-replace end market, high single-digit organic revenue growth, 20+% EBITDA margin and 30% return on investment.”

Photo by Shane Cottle on Unsplash

CSW Industrials, Inc. (NASDAQ:CSWI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held CSW Industrials, Inc. (NASDAQ:CSWI) at the end of second quarter which was 13 in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2023 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.