10 Most Promising Small-Cap Stocks According to Hedge Funds

6. Vestis Corporation (NYSE:VSTS)

Number of Hedge Fund Holders: 34

Market Capitalization as of October 10, 2024: $1.96 Billion

Vestis Corporation (NYSE:VSTS), formerly referred to as Aramark Uniform Services, is a provider of rental uniforms and workplace supplies. The company services the automotive, food, manufacturing, healthcare, and cleanroom industries.

Some of its products include mops, uniforms, first aid kits, floor mats, towels, and linens. The company processes more than 345 million garments every day and services over 300,000 customers in more than 340 locations. Vestis Corporation (NYSE:VSTS) leverages technology to understand and address the unique needs of customers.

Vestis Corporation (NYSE:VSTS) believes its new delayered business structure and sales leadership will promise accelerated growth for the company ahead. In addition to that, the company witnessed an improvement in customer retention rates, validating its decision to decrease pricing. Overall, its new business structure is expected to generate $8 million in annualized gross returns.

The company’s new business structure and leadership are expected to turn things around for VSTS. As its retention rates suggest, the company has already begun to reap the benefits of the strategic changes Vestis (NYSE:VSTS) has committed to this year.