15 Small-Cap Manufacturing Stocks Hedge Funds Are Buying

12. Woodward Inc. (NASDAQ:WWD)

Market Capitalization as of April 25: $10.8 billion

Number of Hedge Fund Holders: 35

Woodward Inc. (NASDAQ:WWD) designs, manufactures, and services control solutions for the aerospace and industrial markets. It operates through two segments: Aerospace and Industrial. Its products are used on commercial and private aircraft & rotorcraft, as well as on military fixed-wing aircraft & rotorcraft, guided weapons, and other defense systems.

Wooward’s Aerospace segment made a $494 million revenue in Q1 2025, which was up 7% year-over-year. While commercial OEM sales declined by 10% due to a pause in deliveries of certain product lines to Boeing, this impact was offset by growth in other areas. For instance, commercial aftermarket sales surged by 19%, defense OEM sales increased by 21%, and defense aftermarket sales grew by 8%.

The Aerospace segment’s earnings for Q1 reached $95 million, which was 19.2% of segment sales.  Woodward Inc. (NASDAQ:WWD) now has demand from airframe and engine OEMs, which indicates growth in the aerospace market. Woodward is preparing to meet this demand through actions like direct labor hiring and close collaboration with suppliers to address any ongoing supply chain challenges.