Here's Why Roper Technologies (ROP) Fell in Q2

Baron Funds, an investment management company, released its “Baron Asset Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. stocks rose amid volatility caused by tariff policies and Middle East tensions. Early April risk-off sentiment was fueled by Trump’s “Liberation Day” tariffs, seen as more severe than expected. U.S. equities rose after April 8, driven by favorable trade news, strong earnings, dovish Fed signals, and AI momentum, reaching record highs by quarter’s end. During the second quarter, the fund was up 7.85% (Institutional Shares) compared to an 18.20% gain for the Russell Midcap Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Baron Asset Fund highlighted stocks such as Roper Technologies, Inc. (NASDAQ:ROP). Roper Technologies, Inc. (NASDAQ:ROP) designs and develops software and technology-enabled products and solutions. The one-month return of Roper Technologies, Inc. (NASDAQ:ROP) was -3.94%, and its shares gained 2.68% of their value over the last 52 weeks. On July 31, 2025, Roper Technologies, Inc. (NASDAQ:ROP) stock closed at $550.40 per share, with a market capitalization of $59.176 billion.

Baron Asset Fund stated the following regarding Roper Technologies, Inc. (NASDAQ:ROP) in its second quarter 2025 investor letter:

Modest declines from the Fund’s sizable positions in Gartner, Inc. and Roper Technologies, Inc. (NASDAQ:ROP) also contributed to relative weakness in the sector. Roper owns a portfolio of businesses with market-leading software and technology-enabled products with the goal of compounding cash flow over time. The company has a high percentage of recurring revenue and maintains high cash returns on investment in defensible niche businesses. After outperforming in the first quarter when investors rotated into more defensible growth businesses in a period of heightened market volatility, Roper’s shares underperformed as higher growth segments of the market recovered swiftly.

Roper Technologies, Inc. (NASDAQ:ROP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held Roper Technologies, Inc. (NASDAQ:ROP) at the end of the first quarter, which was 54 in the previous quarter. Roper Technologies, Inc.’s (NASDAQ:ROP total revenue grew 13% to $1.94 billion in the second quarter 2025. While we acknowledge the potential of Roper Technologies, Inc. (NASDAQ:ROP) 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 Roper Technologies, Inc. (NASDAQ:ROP) and shared the list of best dividend stocks to buy and hold forever. Conestoga Capital Advisors also commented on Roper Technologies, Inc. (NASDAQ:ROP) in its Q2 2025 investor letter. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

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