Five holdings of outperforming small-cap value fund Heartland

Barron’s has highlighted five stocks held by Heartland Value, a fund focused on investing in small-cap companies. The fund delivered a 30.8% one-year return, compared with 25.4% for the Russell 2000 Value index. Morningstar has ranked Heartland Value among the top 4% of funds in its category based on that performance.

Here are the stocks from the fund’s portfolio that Barron’s singled out.

Heartland Value has bought more shares in Associated Banc-Corp, a bank holding company with $55 billion in assets, amid volatility in the financial sector triggered by the Middle East conflict, Barron’s writes.

Over the past month, the company’s shares have fallen by more than 12% to $24.70 apiece. Heartland Value values Associated at $36 per share, implying upside of nearly 46%.

Wall Street analysts are largely neutral on the stock: it has eight “hold” ratings versus just three “buy” ratings. The average target price is $30 per share, or about 21% above its closing price on Tuesday.

Century Communities, founded in 2002 and engaged in building affordable housing, is “a marvelous long-term investment,” according to Heartland Value comanager Bill Nasgovitz. The company has a market capitalization of $1.7 billion, which, according to Nasgovitz, is about 66% of its book value. He also notes that insiders own around 13% of the stock. The comanager also adds that the company has never posted a loss.

Three Wall Street analysts rate Century Communities a “buy,” while two rate it a “sell.” The average target price is $73.75 per share, implying 26% upside.

Choice Hotels International owns hotel brands including Radisson, Comfort Inn, and Quality Inn. Most of its properties are located in the U.S., which could allow the company to benefit from Americans potentially cutting back on overseas travel in a weaker economy, Nasgovitz says. He also notes that insiders own 45% of the stock.

Wall Street is broadly neutral on the stock's prospects: it has eight “hold” ratings, five “sell” ratings, and four “buy” ratings. The average target price of $112 per share implies upside of more than 13%.

Heartland Value bought shares in Primo Brands in the fourth quarter, after exiting the position in 2024. The fund took advantage of a sharp decline in the stock price. Shares plunged after the company decided last year to accelerate its integration with Blue Triton, a former Nestlé division it merged with in 2022. That move led to significant logistical challenges, compounded by a tornado that damaged one of Primo Brands’ facilities. As a result, the stock erased all of the gains it had made over the previous two years. The situation led to a management change, and the new leadership has been able to stabilize operations. Since January 1, the shares are up nearly 25%.

Wall Street broadly shares Heartland Value’s optimism: the stock has 10 “buy” calls versus three “hold” ratings. The average target price is $27 per share, implying about 31% upside.

Columbia Sportswear’s revenue has declined after a Covid-era surge and has been pressured by tariffs of late. Over the past five years, the stock is off 47%, including a 40% drop since April 2025, when higher Trump rolled out his trade policy were first announced. The Nasgovitz-managed fund has used this decline to increase its position. Nasgovitz describes the company as resilient, profitable, debt free, and cash rich. Columbia also pays dividends.

Wall Street remains cautious on Columbia as a stock investment: five analysts rate the shares a “hold,” three a “buy,” and two a “sell.” The average target price of $64.50 per share implies nearly 17% upside.