Aris Water Solutions (ARIS) Fell on Concerns Over Oil Price Downturn

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 Aris Water Solutions, Inc. (NYSE:ARIS). Aris Water Solutions, Inc. (NYSE:ARIS) is an environmental infrastructure and solutions company. The one-month return of Aris Water Solutions, Inc. (NYSE:ARIS) was 11.14%, and its shares gained 45.47% of their value over the last 52 weeks. On August 19, 2025, Aris Water Solutions, Inc. (NYSE:ARIS) stock closed at $23.74 per share, with a market capitalization of $1.405 billion.

Carillon Eagle Small Cap Growth Fund stated the following regarding Aris Water Solutions, Inc. (NYSE:ARIS) in its second quarter 2025 investor letter:

"Aris Water Solutions, Inc. (NYSE:ARIS) provides water infrastructure and solutions for the oil and gas industry within the Delaware subbasin of the Permian Basin in West Texas and southeastern New Mexico. The shares declined because of concerns about what the recent down turn in oil prices would mean for drilling activity on the company’s footprint. Despite this ongoing fluid situation, the company’s results remain more tied to ongoing oil production, where it provides an essential service to operators, primarily by handling, disposing of, or recycling volumes of produced water that continue to grow as shale wells mature and the quality of the resource slowly declines."

Aris Water Solutions, Inc. (NYSE:ARIS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Aris Water Solutions, Inc. (NYSE:ARIS) at the end of the first quarter, which was 31 in the previous quarter. While we acknowledge the potential of Aris Water Solutions, Inc. (NYSE:ARIS) 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 Aris Water Solutions, Inc. (NYSE:ARIS) and shared Riverwater Partners Micro Opportunities Strategy's 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.

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.