SiteOne Landscape Supply’s (SITE) Soft First Quarter Is a Seasonal Feature, Not a Flaw

SiteOne Landscape Supply’s (SITE) Soft First Quarter Is a Seasonal Feature, Not a Flaw

Fri, September 18, 2026 at 4:03 PM GMT+3 3 min read

• SITE +1.54%
• ^RUT -0.50%

Fenimore Asset Management, an investment management company, released its Q2 2026 investor letter. The letter can be downloaded here. U.S. equity markets saw broad gains in Q2, driven by strong corporate earnings, economic resilience, and enthusiasm for artificial intelligence (AI). Major indices reached all-time highs, though the energy sector declined. Continued earnings growth, especially among AI-related investments, supported the rally. Technology, particularly semiconductors, led performance as demand for AI infrastructure surged. Despite macroeconomic uncertainties and interest rate influences, Fenimore remains committed to investing in high-quality businesses. The Fenimore Small Cap Strategy returned 9.51% in the quarter, lagging the Russell 2000 Index's 21.49% gain. The underperformance was largely driven by avoiding lower-quality tech stocks linked to data center expansions. Additionally, reviewing the Fund's top five holdings could help identify its best picks for 2026.

In its second-quarter 2026 investor letter, Fenimore Asset Management highlighted SiteOne Landscape Supply, Inc. (NYSE:SITE). SiteOne Landscape Supply, Inc. (NYSE:SITE), a leading distributor of landscape supplies, detracted from portfolio performance during the quarter. On September 17, 2026, SiteOne Landscape Supply, Inc. (NYSE:SITE) closed at $89.10 per share. The one-month return of SiteOne Landscape Supply, Inc. (NYSE:SITE) was -7.13%, and its shares lost 34.14% over the past 52 weeks. SiteOne Landscape Supply, Inc. (NYSE:SITE) has a market capitalization of $3.89 billion.

Fenimore Asset Management stated the following regarding SiteOne Landscape Supply, Inc. (NYSE:SITE) in its Q2 2026 investor letter:

"Our top detractors were SiteOne Landscape Supply, Inc. (NYSE:SITE) and ExlService Holdings (EXLS). SITE is the largest and only national distributor of landscaping products. The first quarter is usually slow and a longer winter led to lighter results than anticipated. We view this as a feature of the landscaping business and remain bullish on SITE's management team and long-term growth prospects."

SiteOne Landscape Supply, Inc. (NYSE:SITE) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. According to our database, 43 hedge fund portfolios held SiteOne Landscape Supply, Inc. (NYSE:SITE) at the end of the second quarter, compared to 30 in the previous quarter. While we acknowledge the potential of SiteOne Landscape Supply, Inc. (NYSE:SITE) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered SiteOne Landscape Supply, Inc. (NYSE:SITE) and shared Conestoga Capital Advisors' views on the company. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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This article is originally published at Insider Monkey.