RBC Bearings (RBC) Rose as Results and Guidance Exceeded Expectations

1 month ago 12

Soumya Eswaran

Tue, Apr 29, 2025, 7:00 AM 3 min read

Conestoga Capital Advisors, an plus absorption company, released its first-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. Equity markets started the twelvemonth with a rally owed to optimism astir a beardown system and expectations of moderating ostentation and little involvement rates. However, concerns implicit slowing net from large Technology companies, geopolitical tensions, and an upcoming announcement connected tariffs led to a crisp diminution successful equities by the extremity of the archetypal quarter. Investors sought safety, driving U.S. Treasury yields down. The Conestoga Small Cap Composite returned -11.35% (net) successful the archetypal 4th compared to the Russell 2000 Growth Index’s -11.12% return. The Conestoga SMid Cap Composite returned -5.73% compared to the Russell 2500 Growth Index’s -10.80% return. The Conestoga Micro-Cap Composite returned -8.24% vs the Russell Microcap Growth Index’s instrumentality of -17.75%. Finally, the Conestoga Mid Cap Composite returned 0.96% (net), compared to the Russell Midcap Growth Index’s -7.12% return. Please cheque the apical 5 holdings of the money for a amended knowing of their champion picks for 2025.

In its first-quarter 2025 capitalist letter, Conestoga Capital Advisors highlighted stocks specified arsenic RBC Bearings Incorporated (NYSE:RBC). Headquartered successful Oxford, Connecticut, RBC Bearings Incorporated (NYSE:RBC) manufactures engineered precision bearings and components. The one-month instrumentality of RBC Bearings Incorporated (NYSE:RBC) was 0.93%, and its shares gained 31.59% of their worth implicit the past 52 weeks. On April 28, 2025, RBC Bearings Incorporated (NYSE:RBC) banal closed astatine $324.75 per stock with a marketplace capitalization of $10.212 billion.

Conestoga Capital Advisors stated the pursuing regarding RBC Bearings Incorporated (NYSE:RBC) successful its Q1 2025 capitalist letter:

"RBC Bearings Incorporated (NYSE:RBC) is simply a shaper and marketer of highly engineered precision bearings that are sold successful the Industrial (70% of Revenue) and the Aerospace markets (30% of Revenue). RBC’s quarterly results and guidance were amended than expected with an awesome gross borderline show arsenic the institution continued to execute synergies from its Dodge acquisition. Visibility is improving for RBC owed to the aerospace rhythm and betterment successful the concern marketplace (infrastructure bill)."

Is RBC Bearings Incorporated (RBC) the Top Stock to Buy According to Durable Capital Partners?

A skilled machinist inspecting a precision bearing for a aerospace/defense application.

RBC Bearings Incorporated (NYSE:RBC) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge money portfolios held RBC Bearings Incorporated (NYSE:RBC) astatine the extremity of the 4th fourth which was 26 successful the erstwhile quarter. In the 3rd 4th of fiscal twelvemonth 2025, RBC Bearings Incorporated (NYSE:RBC) reported $394 cardinal successful nett sales, representing a 5.5% summation implicit past year. While we admit the imaginable of RBC Bearings Incorporated (NYSE:RBC) arsenic an investment, our condemnation lies successful the content that AI stocks clasp greater committedness for delivering higher returns, and doing truthful wrong a shorter timeframe. If you are looking for an AI banal that is arsenic promising arsenic NVIDIA but that trades astatine little than 5 times its earnings, cheque retired our study astir the cheapest AI stock.