What Makes Teledyne Technologies Incorporated (TDY) an Investment Choice?

Artisan Partners, an investment management company, released its “Artisan Mid Cap Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Global equity markets continued their strength in the third quarter, ending the period with double-digit year-to-date gains. In the quarter, the fund’s Investor Class fund ARTMX returned 8.80%, Advisor Class fund APDMX posted a return of 8.80%, and Institutional Class fund APHMX returned 8.83%, compared to a 2.78% return for the Russell Midcap Growth Index. The significant outperformance was led by holdings in the health care sector. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Artisan Mid Cap Fund highlighted stocks such as Teledyne Technologies Incorporated (NYSE:TDY). Teledyne Technologies Incorporated (NYSE:TDY) offers enabling technologies for industrial growth markets. The one-month return of Teledyne Technologies Incorporated (NYSE:TDY) was 3.82%, and its shares gained 28.39% of their value over the last 52 weeks. On October 14, 2025, Teledyne Technologies Incorporated (NYSE:TDY) stock closed at $571.93 per share, with a market capitalization of $26.817 billion.

Artisan Mid Cap Fund stated the following regarding Teledyne Technologies Incorporated (NYSE:TDY) in its third quarter 2025 investor letter:

"During the quarter, we initiated new positions in Woodward, Teledyne Technologies Incorporated (NYSE:TDY) and ServiceTitan. Teledyne provides advanced sensing, transmission and analysis technologies across niche markets, including digital imaging, instrumentation, and aerospace and defense electronics. Its aerospace and defense segment is benefiting from rising global military spending, which is driving demand for high-performance sensors, drones and space systems. Flagship products like nano drones and proprietary sensor technologies position Teledyne well to meet evolving defense needs. The company’s industrial markets are also recovering, supported by trends in automation and testing. Teledyne has consistently generated strong free cash flow, and management has a proven track record of value creation through disciplined M&A. With accelerating defense demand and a rebound in industrial markets, we see potential for mid-teens EPS growth driven by both organic growth and strategic expansion."

Teledyne Technologies Incorporated (NYSE:TDY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 51 hedge fund portfolios held Teledyne Technologies Incorporated (NYSE:TDY) at the end of the second quarter, up from 47 in the previous quarter.  While we acknowledge the potential of Teledyne Technologies Incorporated (NYSE:TDY) 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 Teledyne Technologies Incorporated (NYSE:TDY) and shared the list of best lidar stocks to buy. In addition, please check out our hedge fund investor letters Q3 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.