What Makes IRADIMED CORPORATION (IRMD) a Compelling Opportunity?

Riverwater Partners, an investment management company, released its “Micro Opportunities Strategy” Q3 2025 investor letter. The strategy reported positive returns in the quarter but lagged its benchmark as it did not keep pace with the strong rally. The strategy continues to focus on quality companies in the volatile environment. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, Riverwater Partners Micro Opportunities Strategy highlighted stocks such as IRADIMED CORPORATION (NASDAQ:IRMD). Headquartered in Winter Springs, Florida, IRADIMED CORPORATION (NASDAQ:IRMD) is a magnetic resonance imaging (MRI) compatible medical device manufacturer. The one-month return for IRADIMED CORPORATION (NASDAQ:IRMD) was 13.54%, and its shares gained 84.62% over the last 52 weeks. On December 15, 2025, IRADIMED CORPORATION (NASDAQ:IRMD) stock closed at $97.02 per share, with a market capitalization of $1.244 billion.

Riverwater Partners Micro Opportunities Strategy stated the following regarding IRADIMED CORPORATION (NASDAQ:IRMD) in its third quarter 2025 investor letter:

"Our Healthcare holdings delivered solid contributions, led by IRADIMED CORPORATION (NASDAQ:IRMD). IRMD's MRI-compatible devices have gained market share, and the company's strong recurring revenue model and excellent returns on invested capital make it an ideal fit for our quality-focused approach. We continue to view medical technology as a compelling subsector offering combining long-term growth opportunities with reasonable valuations."

IRADIMED CORPORATION (NASDAQ:IRMD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held IRADIMED CORPORATION (NASDAQ:IRMD) at the end of the third quarter, which was 13 in the previous quarter. In Q3 2025, IRADIMED CORPORATION (NASDAQ:IRMD) reported record revenue of $21.2 million, marking an increase of 16% from Q3 2024. While we acknowledge the potential of IRADIMED CORPORATION (NASDAQ:IRMD) 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 IRADIMED CORPORATION (NASDAQ:IRMD) and shared the list of best small-cap stocks with huge potential according to Reddit as market looks beyond AI trade. 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.