Merit Medical Systems (MMSI) Lagged in Q2 Due to Tariff Concerns

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 Merit Medical Systems, Inc. (NASDAQ:MMSI). Merit Medical Systems, Inc. (NASDAQ:MMSI) is a single-use medical products manufacturer. The one-month return of Merit Medical Systems, Inc. (NASDAQ:MMSI) was 3.17%, and its shares lost 4.15% of their value over the last 52 weeks. On August 19, 2025, Merit Medical Systems, Inc. (NASDAQ:MMSI) stock closed at $87.15 per share, with a market capitalization of $5.161 billion.

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

"Merit Medical Systems, Inc. (NASDAQ:MMSI) designs, manufactures, and markets single-use medical devices for interventional, diagnostic, and therapeutic procedures, primarily in cardiology, radiology, oncology, and endoscopy. The stock lagged due largely to tariff concerns following the Liberation Day announcement, impacting sentiment given its global footprint and exposure to China. While earnings results beat expectations, earnings per share (EPS) guidance was lowered due to increased tariff-related costs. Management expects to mitigate about half of this impact by 2026 through manufacturing and operational initiatives. Despite this near-term margin pressure, we believe nothing has fundamentally changed with the company as it continues to exceed revenue guidance. We remain confident in the company’s long-term outlook."

Merit Medical Systems, Inc. (NASDAQ:MMSI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Merit Medical Systems, Inc. (NASDAQ:MMSI) at the end of the first quarter, which was 31 in the previous quarter. In the second quarter of 2025, Merit Medical Systems, Inc. (NASDAQ:MMSI) reported $382.5 million in revenues, up 13% year-over-year on a GAAP basis and up 12.5% year-over-year on a constant currency basis. While we acknowledge the potential of Merit Medical Systems, Inc. (NASDAQ:MMSI) 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 Merit Medical Systems, Inc. (NASDAQ:MMSI) and shared Conestoga Capital Advisors' views on the company. 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.