Is Dorman Products (DORM) an Attractively Valued Stock?

3 hours ago 3

Soumya Eswaran

Tue, May 12, 2026 astatine 6:46 AM CDT 3 min read

Investment absorption company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” first-quarter 2026 capitalist letter. A transcript of the missive tin beryllium downloaded here. In a volatile but affirmative quarter, the FPA Queens Road Small Cap Value Fund (“Fund”) returned 6.07%, beating the Russell 2000 Value Index’s 4.96%. The Fund expects amended show successful down markets and underperformance successful speculative ones owed to its disciplined approach. Amid ongoing planetary commodity shocks, governmental issues, and economical fallout from the Iran conflict, the missive discusses small-caps and the firm's semipermanent concern strategy. In Q1, the money continued to rebalance the portfolio towards higher-quality holdings, focusing connected equilibrium expanse strength, net consistency, and returns connected capital. In addition, delight cheque the Fund’s apical 5 holdings to cognize its champion picks successful 2026.

In its first-quarter 2026 capitalist letter, FPA Queens Road Small Cap Value Fund highlighted Dorman Products, Inc. (NASDAQ:DORM) arsenic a recently added position. Headquartered successful Colmar, Pennsylvania, Dorman Products, Inc. (NASDAQ:DORM) is an aftermarket automotive products supplier. On May 11, 2026, Dorman Products, Inc. (NASDAQ:DORM) closed astatine $121.01 per share. One-month instrumentality of Dorman Products, Inc. (NASDAQ:DORM) was 9.89%, and its shares mislaid 7.56% implicit the past 52 weeks. Dorman Products, Inc. (NASDAQ:DORM) has a marketplace capitalization of $3.62 billion.

FPA Queens Road Small Cap Value Fund stated the pursuing regarding Dorman Products, Inc. (NASDAQ:DORM) successful its Q1 2026 capitalist letter:

"In Q1, we added 2 caller positions – First American Financial (FAF) and Dorman Products, Inc. (NASDAQ:DORM). Dorman Products manufactures and sells aftermarket car parts. The institution scores good connected our dashboard, having grown historically astatine a accordant mid-single digit rate, with precocious returns connected superior successful a non-cyclical industry. Debt to EBITDA is little than 1x, and DORM uses its currency travel to bargain backmost stock. 2026 net volition tick down arsenic the institution laps an accounting attraction that allowed Dorman to enactment little cost, pre-tariff inventory done its outgo of goods sold. Dorman is presently trading astatine a discount to its humanities net aggregate and we judge its shares are attractively priced."

Dorman Products, Inc. (NASDAQ:DORM) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. According to our database, 21 hedge money portfolios held Dorman Products, Inc. (NASDAQ:DORM) astatine the extremity of the 4th quarter, up from 19 successful the erstwhile quarter. In Q1 2026, Dorman Products, Inc. (NASDAQ:DORM) reported consolidated nett income of $529 million, an summation of 4% compared to Q1 2025. While we admit the imaginable of Dorman Products, Inc. (NASDAQ:DORM) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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