Here’s Why Murphy USA (MUSA) Traded Lower in Q2

ClearBridge Investments, an investment management company, released its “ClearBridge Small Cap Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The small-cap stocks experienced volatility in the second quarter. The Russell 2000 Index rebounded 10% of its November 2024 record highs just 55 days after the “Liberation Day” decline. It was driven by growth, momentum, high-beta, and low-quality stocks. Even though small-cap stocks rose, they failed to outpace the larger-cap peers due to perceived sensitivity to macroeconomic shocks. The Russell 2000 returned 8.5% for the quarter compared to the 11.1% of the Russell 1000 Index. The strategy underperformed the benchmark in this backdrop. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, ClearBridge Small Cap Strategy highlighted stocks such as Murphy USA Inc. (NYSE:MUSA). Murphy USA Inc. (NYSE:MUSA) markets retail motor fuel products and convenience merchandise. The one-month return of Murphy USA Inc. (NYSE:MUSA) was -0.92%, and its shares lost 27.18% of their value over the last 52 weeks. On September 12, 2025, Murphy USA Inc. (NYSE:MUSA) stock closed at $390.19 per share, with a market capitalization of $7.528 billion.

ClearBridge Small Cap Strategy stated the following regarding Murphy USA Inc. (NYSE:MUSA) in its second quarter 2025 investor letter:

“Stock selection within consumer discretionary sector reversed after a strong first-quarter performance, as several idiosyncratic headwinds weighed on holdings Murphy USA Inc. (NYSE:MUSA) and Oxford Industries. Longtime positive contributor Murphy USA, a convenience store and gas station operator, came under pressure in the quarter after reporting weaker than expected earnings due to lower fuel volumes, rising store operating expenses and a decline in same-store sales (despite an increase in total merchandise sales). However, Murphy’s focus on rising fuel margins while maintaining its low-cost operating discipline, as well as its investment in store remodels and geographic expansion, continue to drive consistent growth at high incremental returns.”

Murphy USA Inc. (NYSE:MUSA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 45 hedge fund portfolios held Murphy USA Inc. (NYSE:MUSA) at the end of the second quarter, compared to 60 in the previous quarter. While we acknowledge the risk and potential of Murphy USA Inc. (NYSE:MUSA) 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 Murphy USA Inc. (NYSE:MUSA) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Murphy USA Inc. (NYSE:MUSA) and shared The London Company SMID Cap Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q2 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.