Why Carlisle Companies (CSL) Stock is a Compelling Investment Case

Vulcan Value Partners recently released its Q2 2020 Investor Letter, a copy of which you can download here. The Large Cap Composite fund posted a return of 24.5% for the second quarter (net of fees), outperforming its benchmark, the S&P 500 Index which returned 20.5% in the same quarter. You should check out Vulcan Value Partners’ top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash.

In the said letter, Vulcan Value Partners’ highlighted a few stocks and Carlisle Companies Inc (NYSE:CSL) is one of them. Carlisle Companies Inc (NYSE:CSL) manufactures and distributes construction materials, transportation products, and general industry products. Year-to-date, Carlisle Companies Inc (NYSE:CSL) stock lost 18.9% and on August 28th it had a closing price of $131.32. Here is what Vulcan Value Partners’ said:

“Carlisle Companies Inc. is a diversified manufacturing company. Carlisle’s largest business segment is commercial materials which produces roofing products made of synthetic rubber. Approximately 70% of its roofing business revenue comes from replacement. During the first part of the year, the economic slowdown caused unit volume to decrease, yet pricing and margins remain steady. We expect revenues to increase in the second half of 2020 and to normalize in 2021. Carlisle has a shareholder-oriented management team who are excellent capital allocators. The company tends to grow stronger at the expense of its weaker competitors during difficult economic times. We are delighted to have it back in the portfolio.”

In Q1 2020, the number of bullish hedge fund positions on Carlisle Companies Inc (NYSE:CSL) stock decreased by about 12% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t seem to agree with Carlisle’s growth potential. Our calculations showed that Carlisle Companies Inc (NYSE:CSL) 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. Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost precious metals prices. So, we are checking out this junior gold mining stock.. 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.