15 Small-Cap Manufacturing Stocks Hedge Funds Are Buying

5. Masco Corp. (NYSE:MAS)

Market Capitalization as of April 25: $12.75 billion

Number of Hedge Fund Holders: 43

Masco Corp. (NYSE:MAS) provides home improvement and building products in North America, Europe, and internationally. The company’s Plumbing Products segment manufactures products like faucets, showerheads, shower drains, and water filtration systems. Its Decorative Architectural Products segment offers paints, primers, specialty coatings, stains, and waterproofing products.

In Q1 2025, the company’s Plumbing segment had its sales increase by ~1%. Within this segment, North American plumbing sales also grew by ~1% due to higher volumes in the spa and sauna business and favorable pricing, which partially offset lower volumes in the retail channel. This performance was achieved despite facing cost increases due to newly enacted tariffs, particularly on imports from China.

However, the Plumbing segment is expected to be significantly impacted by the new tariffs. Masco Corp. (NYSE:MAS) estimates an in-year cost of ~$400 million in 2025 due to these tariffs, before any mitigation efforts. The annualized impact of these incremental tariffs is estimated to be ~$625 million out of a total annualized tariff impact of $675 million for the entire company. However, Masco estimates that it can offset ~$200 to $250 million, or roughly 50% to 65%, of these tariff costs during 2025.