What Makes UniFirst Corporation (UNF) an Investment Choice?

TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. During the quarter, the fund returned 2.26% (gross) and 2.01% (net), compared to the Russell 2000 Growth Index’s 12.19% return. During the quarter, all asset classes except fixed income outside the U.S. posted positive returns. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, TimesSquare Capital U.S. Small Cap Growth Strategy highlighted stocks such as UniFirst Corporation (NYSE:UNF). UniFirst Corporation (NYSE:UNF) provides workplace uniforms and protective workwear clothing. The one-month return of UniFirst Corporation (NYSE:UNF) was 10.04%, and its shares lost 3.31% of their value over the last 52 weeks. On January 5, 2026, UniFirst Corporation (NYSE:UNF) stock closed at $197.92 per share, with a market capitalization of $3.586 billion.

TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding UniFirst Corporation (NYSE:UNF) in its third quarter 2025 investor letter:

"During the quarter we began a position in UniFirst Corporation (NYSE:UNF), which supplies a range of work clothing, uniforms, protective apparel, and facility service products. Previously, UniFirst had less efficient operations than competitors, which led to relative underperformance. Over the last few years, UniFirst has made significant technological upgrades, enhancing both its operations and customer service. Those strategic improvements should improve its margins and benefit its share price."

UniFirst Corporation (NYSE:UNF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 31 hedge fund portfolios held UniFirst Corporation (NYSE:UNF) at the end of the third quarter, the same as in the previous quarter. While we acknowledge the potential of UniFirst Corporation (NYSE:UNF) 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 UniFirst Corporation (NYSE:UNF) and shared the list of stocks Jim Cramer recently discussed. 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.