Growing Backlog and Strong Outlook Make BWX Technologies (BWXT) a Solid Investment

Loomis Sayles, an investment management company, released its “Small/Mid Cap Growth Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The quarter started with an extreme level of policy uncertainty but concluded with an all-time high for the S&P 500. In this environment, the fund lagged the Russell 2500 Growth Index benchmark in the quarter, returning 8.49% vs. 11.31% for the index. Security selection within the consumer discretionary and financials sectors led the underperformance of the fund in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Loomis Sayles Small/Mid Cap Growth Fund highlighted stocks such as BWX Technologies, Inc. (NYSE:BWXT). Headquartered in Lynchburg, Virginia, BWX Technologies, Inc. (NYSE:BWXT) is a nuclear component manufacturing and distributing company. The one-month return of BWX Technologies, Inc. (NYSE:BWXT) was -1.53%, and its shares gained 71.15% of their value over the last 52 weeks. On September 12, 2025, BWX Technologies, Inc. (NYSE:BWXT) stock closed at $168.33 per share, with a market capitalization of $15.385 billion.

Loomis Sayles Small/Mid Cap Growth Fund stated the following regarding BWX Technologies, Inc. (NYSE:BWXT) in its second quarter 2025 investor letter:

"ATI, Circle Internet Group and BWX Technologies, Inc. (NYSE:BWXT) were the top individual contributors to performance. BWX Technologies is a specialty provider and manufacturer of precision naval nuclear components, reactors and nuclear fuel for the US government, uranium processing and environmental site restoration services, as well as a new supplier into the nuclear medicine industry. The company has had a number of solid quarters in a row, with a growing backlog and strong outlook."

BWX Technologies, Inc. (NYSE:BWXT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held BWX Technologies, Inc. (NYSE:BWXT) at the end of the second quarter, which was 52 in the previous quarter. BWX Technologies, Inc. (NYSE: BWXT) reported second quarter revenue of $764 million, reflecting a 12% increase, driven by growth in both of its segments. While we acknowledge the potential of BWX Technologies, Inc. (NYSE:BWXT) 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 BWX Technologies, Inc. (NYSE:BWXT) and shared the list of best uranium stocks to buy. In Q2 2025, Brown Advisory Small-Cap Growth Strategy established a position in BWX Technologies, Inc. (NYSE:BWXT). 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.