15 Small-Cap Manufacturing Stocks Hedge Funds Are Buying

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10. ITT Inc. (NYSE:ITT)

Market Capitalization as of April 25: $11.12 billion

Number of Hedge Fund Holders: 36

ITT Inc. (NYSE:ITT) manufactures and sells engineered critical components and customized technology solutions for the transportation, industrial, and energy markets. The company’s Motion Technologies segment manufactures items like brake pads, shock absorbers, energy absorption components, and damping technologies primarily for the transportation industry.

In 2024, the company’s IP (Industrial Process) segment achieved an 8% organic revenue growth. Factoring in the recent acquisition of Vanooy, the total revenue growth for the IP segment reached the high teens. This acquisition supported IP’s growth and contributed 16 points to the IP’s total revenue increase in Q4 2024.

This segment’s performance was also fueled by the growth in pump projects. Notably, in Q4 2024, IP’s revenue from pump projects saw a 22% organic increase, alongside a 7% organic growth in short-cycle products. For 2024, IP’s organic growth in pump projects was 19%, which came after an even higher 31% in 2023. The IP segment is positioned for continued growth because of a record backlog of over $900 million.

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