Should You Add Granite Construction (GVA) to Your Portfolio?
Wasatch Global Investors, an asset management company, released its “Wasatch Micro Cap Value Strategy” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. The strategy posted a double-digit gain in the fourth quarter but trailed the benchmark Russell Microcap Index which rose 16.06%. In 2023, the strategy appreciated and outperformed the benchmark’s 9.33% return. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Wasatch Micro Cap Value Strategy featured stocks like Granite Construction Incorporated (NYSE:GVA) in the fourth quarter 2023 investor letter. Headquartered in Watsonville, California, Granite Construction Incorporated (NYSE:GVA) is a US-based construction materials producer and infrastructure contractor. On March 12, 2024, Granite Construction Incorporated (NYSE:GVA) stock closed at $54.01 per share. One-month return of Granite Construction Incorporated (NYSE:GVA) was 11.04%, and its shares gained 35.03% of their value over the last 52 weeks. Granite Construction Incorporated (NYSE:GVA) has a market capitalization of $2.375 billion.
Wasatch Micro Cap Value Strategy stated the following regarding Granite Construction Incorporated (NYSE:GVA) in its fourth quarter 2023 investor letter:
"We also added Granite Construction Incorporated (NYSE:GVA), which concentrates on heavy infrastructure projects including site preparation and construction of roads, bridges, dams, tunnels, mass-transit facilities and airports. We consider the company to be an “inexpensive grower.” Although the stock price is near a high, the valuation is at a 7 multiple based on forward EV-to-EBITDA, which we consider inexpensive. Revenues appear on track to grow by 20% or more for several years, and earnings are likely to grow even faster. Additionally, the company’s balance sheet is solid, with significant cash on hand. As a result, like other inexpensive growers in the strategy, we expect to hold Granite Construction for the long term."
A construction worker in full protective gear using heavy machinery to build a bridge.
Granite Construction Incorporated (NYSE:GVA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Granite Construction Incorporated (NYSE:GVA) was held by 15 hedge fund portfolios, compared to 12 in the previous quarter, according to our database.
We discussed Granite Construction Incorporated (NYSE:GVA) in another article and shared Bernzott Capital Advisors' views on the company. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
Disclosure: None. This article is originally published at Insider Monkey.
