What Makes Hillman Solutions Corp. (HLMN) a Resilient Stock?

Conestoga Capital Advisors, an asset management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets continued their momentum that began in early April, reaching new all-time highs in the third quarter. In the quarter, the Conestoga Small Cap Composite returned -1.4% net-of-fees, underperforming the Russell 2000 Growth Index’s impressive 12.2% gain. Most of the Index's gains come from low-quality stock leadership, where unprofitable, high-beta names have considerably outperformed. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2025.

In its third-quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as Hillman Solutions Corp. (NASDAQ:HLMN). Hillman Solutions Corp. (NASDAQ:HLMN) offers hardware-related products and related merchandising services. The one-month return of Hillman Solutions Corp. (NASDAQ:HLMN) was -0.64%, and its shares lost 13.06% of their value over the last 52 weeks. On October 17, 2025, Hillman Solutions Corp. (NASDAQ:HLMN) stock closed at $9.32 per share, with a market capitalization of $1.842 billion.

Conestoga Capital Advisors stated the following regarding Hillman Solutions Corp. (NASDAQ:HLMN) in its third quarter 2025 investor letter:

"Hillman Solutions Corp. (NASDAQ:HLMN) is a leading provider of hardware and protective solutions to retailers, professional contractors, and consumers across North America. Demand for hardware, fasteners, and home improvement solutions continued to prove resilient despite a mixed retail environment. Cost efficiencies, inventory discipline, and better working capital management improved free cash flow, allowing debt reduction and strengthening investor confidence."

Hillman Solutions Corp. (NASDAQ:HLMN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 24 hedge fund portfolios held Hillman Solutions Corp. (NASDAQ:HLMN) at the end of the second quarter, compared to 21 in the previous quarter. In the second quarter of 2025, Hillman Solutions Corp. (NASDAQ:HLMN) reported net sales of $402.8 million, reflecting a 6.2% increase compared to the second quarter of 2024. While we acknowledge the potential of Hillman Solutions Corp. (NASDAQ:HLMN) 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 Hillman Solutions Corp. (NASDAQ:HLMN) and shared Madison Small Cap Fund's views on the company in the previous quarter. Hillman Solutions Corp. (NASDAQ:HLMN) detracted from Conestoga Capital Advisors' performance in the previous quarter due to investor concerns oven the potential impact of higher tariff-related costs. 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.