June 14, 2024

The Art of Investment

Mastering the Stock Market Strategies

What Makes The Toro Company (TTC) a Lucrative Investment?

2 min read

The London Company, an investment management company, released “The London Company SMID Cap Strategy” first quarter 2024 investor letter. A copy of the letter can be downloaded here. US markets posted solid returns in Q1. The portfolio gained 9.4% (9.2% net) during the quarter compared to 6.9% returns for the Russell 2500 Index. Both stock selection and sector exposure led the portfolio to outperform in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.

The London Company SMID Cap Strategy featured stocks like The Toro Company (NYSE:TTC) in the Q1 2024 investor letter. Headquartered in Bloomington, Minnesota, The Toro Company (NYSE:TTC) designs, manufactures, markets, and sells professional turf maintenance equipment and services. On May 3, 2024, The Toro Company (NYSE:TTC) stock closed at $88.31 per share. One-month return of The Toro Company (NYSE:TTC) was 1.73%, and its shares lost 16.62% of their value over the last 52 weeks. The Toro Company (NYSE:TTC) has a market capitalization of $9.22 billion.

The London Company SMID Cap Strategy stated the following regarding The Toro Company (NYSE:TTC) in its first quarter 2024 investor letter:

“Initiated: The Toro Company (NYSE:TTC) – TTC is a dominant player in outdoor equipment with a focus on professional-grade products. Equipment includes turf & landscape maintenance, snow & ice management, underground utility construction, specialty construction, irrigation, and outdoor lighting solutions. TTC operates through Professional & Residential segments (80% & 20% of revenues, respectively). TTC boasts an expansive dealer network, creating a natural entry barrier through exclusivities and scale. Nearly all its professional sales are non-discretionary: meanwhile, rentals & repairs constitute >25% of revenues. Brand dominance and product innovation has translated to leading market share in subcategories and impressive pricing power. TTC has a large install base with good visibility of replacement cycles (2-5 years). We’re attracted to its resilient free cash flow, high ROIC, strong balance sheet, and disciplined approach to capital allocation that has increased shareholder value over time.”

A close up of a golf course mower, showcasing the intricate precision of its components.

The Toro Company (NYSE:TTC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held The Toro Company (NYSE:TTC) at the end of the fourth quarter which was 17 in the previous quarter.

We previously discussed The Toro Company (NYSE:TTC) in another article, where we shared the list of biggest agriculture stocks in 2024.  In addition, please check out our hedge fund investor letters Q1 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.


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