Service Corporation International (SCI) is Leveraging Aging Population Trends

Aristotle Capital Boston, LLC, an investment advisor, released its “Small/Mid Cap Equity Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. small/mid-cap equities reported solid results in the third quarter, driven by a favorable macroeconomic backdrop. In the third quarter, the strategy delivered a return of 2.57% net of fees (3.07% gross of fees), underperforming the 9.00% total return of the Russell 2500 Index. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Aristotle Capital Small/Mid Cap Equity Strategy highlighted stocks such as Service Corporation International (NYSE:SCI). Service Corporation International (NYSE:SCI) is a deathcare products and services company. The one-month return of Service Corporation International (NYSE:SCI) was -0.12%, and its shares gained 1.63% of their value over the last 52 weeks. On October 31, 2025, Service Corporation International (NYSE:SCI) stock closed at $83.51 per share, with a market capitalization of $11.707 billion.

Aristotle Capital Small/Mid Cap Equity Strategy stated the following regarding Service Corporation International (NYSE:SCI) in its third quarter 2025 investor letter:

"Service Corporation International (NYSE:SCI), is North America's largest provider of deathcare products and services. The company is strategically positioned to benefit from long-term demographic tailwinds driven by the aging Baby Boomer population. Given the high fixed-cost nature of the business, rising volumes are expected to deliver operating leverage, driving margin expansion and increased cash generation. Total shareholder value is further enhanced by a balanced capital allocation strategy, featuring dividends, share repurchases, and accretive acquisitions that strengthen the company’s market leadership."

Service Corporation International (NYSE:SCI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 30 hedge fund portfolios held Service Corporation International (NYSE:SCI) at the end of the second quarter, up from 26 in the previous quarter. While we acknowledge the potential of Service Corporation International (NYSE:SCI) 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 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.