Woodward (WWD) Surged Following Strong Results

Carillon Tower Advisers, an investment management company, released its “Carillon Eagle Small Cap Growth Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, equity markets experienced one of their most turbulent periods in recent history. Small-cap stocks managed a rebound in the quarter, recovering from declines at the beginning of the year. Among style indexes, the Russell 2000® Growth Index led the way with an 11.96% gain, outpacing the Russell 2000® Value Index, which rose by 4.96%. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, the Carillon Eagle Small Cap Growth Fund highlighted stocks such as Woodward, Inc. (NASDAQ:WWD). Woodward, Inc. (NASDAQ:WWD) designs and develops control solutions for the aerospace and industrial markets. Woodward, Inc. (NASDAQ:WWD) stock fell 4.51% over the past month, but its shares rose 59.31% in value over the last 52 weeks. On August 19, 2025, Woodward, Inc. (NASDAQ:WWD) stock closed at $244.93 per share, with a market capitalization of $14.688 billion.

Carillon Eagle Small Cap Growth Fund stated the following regarding Woodward, Inc. (NASDAQ:WWD) in its second quarter 2025 investor letter:

"Woodward, Inc. (NASDAQ:WWD) develops and produces control systems and energy conversion solutions and components for the aerospace and industrial end markets. The stock performed well, driven by a quarterly report highlighted by particularly strong performance in the company’s aero space aftermarket vertical and considerable margin strength. The potential for a long-waited increased rate of production from large airframe original equipment manufacturers (OEMs) could provide an additional tailwind to growth going forward. Investors also remain optimistic about the company’s growing exposure to newer-generation aircraft that is expected to result in a further step-change in aftermarket growth in the latter half of the decade."

Woodward, Inc. (NASDAQ:WWD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held Woodward, Inc. (NASDAQ:WWD) at the end of the first quarter, which was 35 in the previous quarter. In the fiscal third quarter of 2025, Woodward, Inc. (NASDAQ:WWD) reported revenue of $915 million, an increase of 8%, reflecting the strong demand across end markets. While we acknowledge the potential of Woodward, Inc. (NASDAQ:WWD) 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 Woodward, Inc. (NASDAQ:WWD) and shared the list of best large cap defense stocks to buy according to analysts. 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.