10 Best Spin Off Stocks to Buy According to Hedge Funds

5. Vestis Corporation (NYSE:VSTS)

Number of Hedge Fund Holders: 42

In 2023, Aramark broke out its Aramark Uniform Services division to become a new independent, publicly listed company that was eventually called Vestis. Vestis Corporation (NYSE:VSTS) is a provider of rental uniforms and workplace supplies to the automotive, food, industrial, healthcare, and cleanroom industries.

Vestis Corporation (NYSE:VSTS) recently revealed its first quarter financial results for 2025. The company announced revenues and operating income of $684 million and $30 million, respectively, representing a 2% sequential increase over the fourth quarter of 2024, while operating margin stood steady at 4.4%. Adjusted EBITDA for the quarter came in at $81 million, a 0.9% rise over the previous quarter, with the adjusted EBITDA margin slightly improving. Vestis also voluntarily prepaid $20 million in term loan debt as part of a strategic balance-sheet strengthening initiative.