5 Best Small Cap AI Stocks to Invest In

3. Regal Rexnord Corporation (NYSE:RRX)

Number of Hedge Fund Holders: 29

Regal Rexnord Corporation (NYSE:RRX) is a global provider of industrial powertrain solutions, power transmission components, electric motors and electronic controllers, air moving products, and speciality electrical components and systems. Regal Rexnord Corporation (NYSE:RRX)’s main business divisions are Commercial Systems, Industrial Systems, Climate Solutions, and Motion Control Solutions.

Regal Rexnord Corporation (NYSE:RRX)‘s Q3 revenues and profits exceeded expectations. The company reported revenue of $1.33 billion, beating the estimates by $20 million. The Industrial segment increased Regal Rexnord Corporation (NYSE:RRX)’s adjusted EBITDA margins by about 700 basis points by using lean tools assiduously. Industrial Systems’ net sales climbed 10.5% to $163.5 million, or 14.7% on an organic basis. 

TimesSquare Capital Management mentioned Regal Rexnord Corporation (NYSE:RRX) in its Q3 2022 investor letter. Here is what the fund said:

“Back to the positives, there was Regal Rexnord Corporation (NYSE:RRX) that specializes in motion control systems, climate solutions, and similar mechanical components for a variety of end markets. Regal reported better-than-expected revenues and earnings, plus management raised its guidance for the remainder of 2022. Though order volumes declined, that change was still better than feared and all its business lines showed organic growth from better prices. That produced a 24% lift for Regal’s shares.”