Better-Than-Expected Demand and Margins Pushed SiteOne Landscape Supply (SITE) in Q2
Conestoga Capital Advisors, an asset management company, released its “Small Cap Strategy” second-quarter 2023 investor letter. A copy of the same can be downloaded here. The Small Cap Composite rose 4.93% net-of-fees in the second quarter, compared to the Russell 2000 Growth Index’s 7.05% return. The key source of underperformance was poor stock selection, with allocation effects providing little benefit. The underperformance was mostly concentrated in the Industrials sector with minor declines in the Technology and Basic Materials sectors. Gains in the Consumer Discretionary and Utilities sectors partially offset these losses. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Conestoga Small Cap Strategy highlighted stocks like SiteOne Landscape Supply, Inc. (NYSE:SITE) in the second quarter 2023 investor letter. Headquartered in Roswell, Georgia, SiteOne Landscape Supply, Inc. (NYSE:SITE) is a wholesale distributor of landscape supplies. On August 8, 2023, SiteOne Landscape Supply, Inc. (NYSE:SITE) stock closed at $162.93 per share. One-month return of SiteOne Landscape Supply, Inc. (NYSE:SITE) was -6.65%, and its shares gained 16.90% of their value over the last 52 weeks. SiteOne Landscape Supply, Inc. (NYSE:SITE) has a market capitalization of $7.329 billion.
Conestoga Small Cap Strategy made the following comment about SiteOne Landscape Supply, Inc. (NYSE:SITE) in its second quarter 2023 investor letter:
"The Consumer Discretionary sector was the largest contributor to relative returns and was aided by a combination of positive stock selection and allocation effects. SiteOne Landscape Supply, Inc. (NYSE:SITE) provided a tailwind to performance as the distributor of wholesale landscape supplies benefited from an earnings beat and recovery by housing-related stocks. SITE is the largest distributor of supplies for residential and commercial landscape professionals. The stock performed well following better-than-expected demand and margins. Despite higher interest rates and homeowners shifting their budgets from goods to services, landscape spending has appeared to be reasonably stable.”
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SiteOne Landscape Supply, Inc. (NYSE:SITE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held SiteOne Landscape Supply, Inc. (NYSE:SITE) at the end of first quarter which was 18 in the previous quarter.
We discussed SiteOne Landscape Supply, Inc. (NYSE:SITE) in another article and shared Baron Real Estate Fund's views on the company. In addition, please check out our hedge fund investor letters Q2 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.
