RBC Bearings (RBC) is Benefiting from the Improvement in Commercial Aerospace

Conestoga Capital Advisors, an asset management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter began with a historically poor start but gained momentum later as tariff fears subsided and market volatility dropped precipitously. Conestoga Small Cap Composite returned 4.76% in the quarter compared to 11.97% for the Russell 2000 Growth Index. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2025.

In its second quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as RBC Bearings Incorporated (NYSE:RBC). Headquartered in Oxford, Connecticut, RBC Bearings Incorporated (NYSE:RBC) manufactures engineered precision bearings and components. The one-month return of RBC Bearings Incorporated (NYSE:RBC) was 0.96%, and its shares gained 31.85% of their value over the last 52 weeks. On July 24, 2025, RBC Bearings Incorporated (NYSE:RBC) stock closed at $385.02 per share, with a market capitalization of $12.12 billion.

Conestoga Capital Advisors stated the following regarding RBC Bearings Incorporated (NYSE:RBC) in its second quarter 2025 investor letter:

"RBC Bearings Incorporated (NYSE:RBC): RBC is a manufacturer and marketer of highly engineered precision bearings that are sold into the Industrial (64% of revenue) and the Aerospace/Defense markets (36% of revenue). RBC reported solid 1Q quarterly results and is starting to see an acceleration of revenue as the commercial aerospace industry improves. RBC continues to gain market share due to its on-time performance and superior quality of its products."

RBC Bearings Incorporated (NYSE:RBC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 30 hedge fund portfolios held RBC Bearings Incorporated (NYSE:RBC) at the end of the first quarter, compared to 22 in the previous quarter. In the fourth quarter of fiscal 2025, RBC Bearings Incorporated (NYSE:RBC) reported revenue of $438 million, a 5.8% increase over last year. While we acknowledge the potential of RBC Bearings Incorporated (NYSE:RBC) 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 RBC Bearings Incorporated (NYSE:RBC) and shared Conestoga Capital Advisors' views on the company in the previous quarter. 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.