What Makes Gencor Industries (GENC) a Strong Investment? - InvestingChannel

What Makes Gencor Industries (GENC) a Strong Investment?

Palm Valley Capital Management, an investment management firm, released its first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, Palm Valley Capital Fund returned 3.01% compared to a 2.57% rise for the S&P SmallCap 600 Index and a 4.90% return for the Morningstar Small Cap Index. The fund’s securities returned 12.2% during the quarter. The fund’s performance early in the quarter was below its benchmark while closing the gap by quarter end. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Palm Valley Capital Management highlighted stocks like Gencor Industries, Inc. (NYSE:GENC) in the first quarter 2023 investor letter. Headquartered in Orlando, Florida, Gencor Industries, Inc. (NYSE:GENC) designs and manufactures heavy machinery used in highway construction materials and environmental control equipment. On April 6, 2023, Gencor Industries, Inc. (NYSE:GENC) stock closed at $14.50 per share. One-month return of Gencor Industries, Inc. (NYSE:GENC) was -3.07%, and its shares gained 43.56% of their value over the last 52 weeks. Gencor Industries, Inc. (NYSE:GENC) has a market capitalization of $212.537 million.

Palm Valley Capital Management made the following comment about Gencor Industries, Inc. (NYSE:GENC) in its Q1 2023 investor letter:

Gencor Industries, Inc. (NYSE:GENC), a market-leading manufacturer of asphalt plants, posted a strong recovery in profitability in the fourth quarter. Sales grew 28% and gross profit expanded 57% year-over-year from higher pricing and a stabilization of costs. We expect profitability trends to remain favorable due to elevated spending on infrastructure, a healthy backlog, and declining steel prices. Gencor continues to have one of the strongest balance sheets in our opportunity set, with no debt and nearly $100 million in cash and marketable securities, equaling 45% of Gencor’s market capitalization.”

States with the Best Roads in America Rasica/Shutterstock.com

Gencor Industries, Inc. (NYSE:GENC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 4 hedge fund portfolios held Gencor Industries, Inc. (NYSE:GENC) at the end of the fourth quarter which was 3 in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2022 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.

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