Should You Invest in Thermon Group Holdings (THR)?
Diamond Hill Capital, an investment management company, released its “Small Cap Fund” second-quarter 2024 investor letter. A copy of the same can be downloaded here. Equity markets reported mixed results in the second quarter of 2024. However, the broad market Russell 3000 Index and the large-cap-focused Russell 1000 Index advanced approximately 3%, most other market segments posted negative returns. Diamond Hill Small Cap Fund slightly trailed its benchmark, the Russell 2000 Index, in Q2 and returned -3.42% while the benchmark return was -3.28% during the same period. For more information on the fund’s top picks in 2024, please check its top five holdings.
Diamond Hill Small Cap Fund highlighted stocks like Thermon Group Holdings, Inc. (NYSE:THR), in the second quarter 2024 investor letter. Thermon Group Holdings, Inc. (NYSE:THR) offers engineered industrial process heating solutions for process industries. The one-month return of Thermon Group Holdings, Inc. (NYSE:THR) was -4.27%, and its shares gained 12.68% of their value over the last 52 weeks. On August 7, 2024, Thermon Group Holdings, Inc. (NYSE:THR) stock closed at $29.15 per share with a market capitalization of $985.34 million.
Diamond Hill Small Cap Fund stated the following regarding Thermon Group Holdings, Inc. (NYSE:THR) in its Q2 2024 investor letter:
"We continue finding attractively valued, resilient companies the market is overlooking amid its increasingly narrow focus on the mega-cap technology stocks dominating the major indices. In Q2, we initiated new positions in Magnolia Oil & Gas Corp., Thermon Group Holdings, Inc. (NYSE:THR) and Astrana Health.
Thermon Group Holdings is a global leader in highly engineered process heat solutions serving diverse end markets globally with a full suite of mission-critical products for some of the industry’s most complex projects. Thermon has a long-tenured base of over 10,000 customers — including some of the world’s most sophisticated businesses — to whom it provides products to keep operations running and functioning safely."
A close-up of an engineer adjusting temperature levels in a control panel of an industrial process heating system.
Thermon Group Holdings, Inc. (NYSE:THR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held Thermon Group Holdings, Inc. (NYSE:THR) at the end of the first quarter which was 15 in the previous quarter. In the fourth quarter of fiscal 2024, Thermon Group Holdings, Inc. (NYSE:THR) reported $128 million in revenues, up 4% year-over-year. While we acknowledge the potential of Thermon Group Holdings, Inc. (NYSE:THR) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Thermon Group Holdings, Inc. (NYSE:THR) and shared the list of best home appliance stocks to invest in. In addition, please check out our hedge fund investor letters Q2 2024 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.