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

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 is a global industrial technology company specializing in computer numerical control (CNC) machine tools and interactive controls for the metal-cutting industry. The company serves job shops and manufacturers across the aerospace, defense, medical, energy and transportation sectors through three distinct brands: Hurco (premium brand), Milltronics (value brand) and Takumi (precision brand). Hurcos strategic positioning creates a compelling investment opportunity given it has over 50% revenue exposure to Europe, which positions the company well to benefit from European defense and industrial investment.”

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 risk and potential of Hurco Companies, Inc. (NASDAQ:HURC) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Hurco Companies, Inc. (NASDAQ:HURC) and that has 10,000% upside potential, check out our report about this cheapest 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.