Here's Why Mettler Toledo's (MTD) Stock Declined in Q2

Mar Vista Investment Partners, LLC, an investment management company, released its “Mar Vista U.S. Quality Premier Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The first half of 2025 concluded on a remarkable note, with U.S. stocks bouncing back from earlier volatility to reach new record highs. The S&P 500® Index and the Nasdaq Composite led the recovery, both ending the second quarter at all-time peaks. In the second quarter, the strategy returned +14.29% net of fees, compared to +11.10% and +10.94% returns for the Russell 1000 Index and the S&P 500 Index, respectively. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second quarter 2025 investor letter, Mar Vista U.S. Quality Premier Strategy highlighted stocks such as Mettler-Toledo International Inc. (NYSE:MTD). Mettler-Toledo International Inc. (NYSE:MTD) is a precision instruments manufacturer. The one-month return of Mettler-Toledo International Inc. (NYSE:MTD) was 6.99%, and its shares lost 9.05% of their value over the last 52 weeks. On July 10, 2025, Mettler-Toledo International Inc. (NYSE:MTD) stock closed at $1,236.24 per share, with a market capitalization of $25.693 billion.

Mar Vista U.S. Quality Premier Strategy stated the following regarding Mettler-Toledo International Inc. (NYSE:MTD) in its second quarter 2025 investor letter:

"Mettler-Toledo International Inc. (NYSE:MTD) stock declined 1% in the face of continued China weakness and broader concerns about the impact of new healthcare regulations and tariffs. Despite weak unit demand, Mettler continues to flex its pricing power and operating leverage to drive shareholder value growth. We continue to view the stock as materially undervalued as the business returns to more durable double-digit annual intrinsic value growth."

A close-up of a laboratory instrument, with a technician making precise adjustments.

Mettler-Toledo International Inc. (NYSE:MTD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held Mettler-Toledo International Inc. (NYSE:MTD) at the end of the first quarter, compared to 50 in the previous quarter. In the first quarter of 2025, Mettler-Toledo International Inc. (NYSE:MTD) reported sales of $884 million, which reflects 3% decline in local currency. While we acknowledge the potential of MTD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Mettler-Toledo International Inc. (NYSE:MTD) and shared billionaire Richard Chilton’s stock picks with huge upside potential. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.