Holley Remains Compelling Even As Economic Conditions Deteriorate

Daniel Jones Investing Group Leader Follow Summary Holley remains a soft 'buy' as cost-cutting, asset sales, and aftermarket demand drive improved fundamentals and valuation. HLLY benefits from aging vehicle fleets and consumer reluctance to buy new or used cars, supporting steady aftermarket parts demand. Recent financials show revenue growth, adjusted net profit surge, and strong operating cash flow despite headline net loss from asset sales. Management guides for 2024 revenue of $610–$640M and EBITDA of $127–$137M, with HLLY trading at low absolute and relative multiples. Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More » Kosamtu/E+ via Getty Images Back in late June of this year, I told investors in Holley ( HLLY ) that the stock had finally gotten cheap enough to justify an upgrade from a ‘hold’ to a soft ‘buy’. Cost cutting initiatives, not to mention a This article was written by Daniel Jones 37.93K Followers Follow Daniel is an avid and active professional investor. He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.