Here’s What Makes Hurco Companies (HURC) a Compelling Investment Opportunity

HURC +0.37%

Diamond Hill Capital, an investment management company, released its “Small Cap Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Markets continued their rally in the third quarter, with small-cap stocks gaining over 12% as measured by the Russell 2000 Index. However, the portfolio trailed the Russell 2000 Index in the quarter, returning 7.93% (net of fees). The relative underperformance was mainly due to the rally being driven by sectors that the portfolio typically does not own. For more information on the fund’s top picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Diamond Hill Capital Small Cap Strategy highlighted stocks such as Hurco Companies, Inc. (NASDAQ:HURC). Hurco Companies, Inc. (NASDAQ:HURC) is an industrial technology company. The one-month return of Hurco Companies, Inc. (NASDAQ:HURC) was -7.99%, and its shares lost 29.91% of their value over the last 52 weeks. On November 24, 2025, Hurco Companies, Inc. (NASDAQ:HURC) stock closed at $16.40 per share, with a market capitalization of $104.999 million.

Diamond Hill Capital Small Cap Strategy stated the following regarding Hurco Companies, Inc. (NASDAQ:HURC) in its third quarter 2025 investor letter:

"After adding quite a few new businesses to the portfolio in Q2 around the April sell-off, we found it more challenging to find immediately actionable new ideas this quarter with valuations increasing. However, we did initiate one new position in Q3: Hurco Companies, Inc. (NASDAQ:HURC).

Hurco Companies, Inc. (NASDAQ:HURC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 6 hedge fund portfolios held Hurco Companies, Inc. (NASDAQ:HURC) at the end of the second quarter, the same as in the previous quarter.  While we acknowledge the potential of Hurco Companies, Inc. (NASDAQ:HURC) 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.