Residential Division’s Weakness Impacted Toro Company (TTC) in Q3
Mairs & Power, an investment advisor, released the “Mairs & Power Growth Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. The stock market began positively in the third quarter but declined in August and September due to rising interest rates. Despite losing some of its gains in the third quarter, the Mairs & Power Growth Fund is still up 12.19% for the year. In contrast, the Morningstar Large Blend category has experienced a 9.74% year-to-date increase while the S&P 500 Total Return (TR) has increased by 13.07%. The sector allocation led the fund to underperform in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Mairs & Power Growth Fund highlighted stocks like The Toro Company (NYSE:TTC) in the Q3 2022 investor letter. Headquartered in Bloomington, Minnesota, The Toro Company (NYSE:TTC) is a global manufacturer of professional and residential equipment. On November 27, 2023, The Toro Company (NYSE:TTC) stock closed at $83.74 per share. One-month return of The Toro Company (NYSE:TTC) was 3.59%, and its shares lost 23.69% of their value over the last 52 weeks. The Toro Company (NYSE:TTC) has a market capitalization of $8.696 billion.
Mairs & Power Growth Fund made the following comment about The Toro Company (NYSE:TTC) in its Q3 2023 investor letter:
"Not all our stocks have worked out perfectly this year. The Toro Company (NYSE:TTC) has been weak recently as its Residential division finally slowed after years of exceptional growth. While Residential is not an insignificant business for the company, most of the company’s revenue and profitability is driven by its Professional segment, which is firing on all cylinders. The company’s Golf market is the strongest it has been in years and its Underground division should benefit from the Infrastructure Investment and Jobs Act that calls for significant investments in broadband, charging stations, power grid, and water/sewer infrastructure. Our long-term view of Toro is positive, and we have taken advantage of the recent weakness to add to our position."
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The Toro Company (NYSE:TTC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held The Toro Company (NYSE:TTC) at the end of third quarter which was 14 in the previous quarter.
We discussed The Toro Company (NYSE:TTC) in another article and shared the list of momentum stocks billionaires are loading up on. 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.
