Here’s Why Toro (TTC) Reported Decreased Revenue Growth

Mairs & Power, an investment advisor, released the “Mairs & Power Balanced Fund” second quarter 2025 investor letter. A copy of the letter can be downloaded here. The quarter started with tariff uncertainty, conflicts in the Middle East, rising national debt, and the worst start to a year for the dollar; however, it bounced back to rise 25% from that low by the end of the quarter. The fund returned 2.66% in the first half of 2025. The fund underperformed the benchmark composite indexes (60% S&P 500 Total Return Index and 40% Bloomberg U.S. Government/Credit Bond Index), which were up 5.43% and the Morningstar Moderate Allocation peer group, which rose 5.67%. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Mairs & Power Balanced Fund highlighted stocks such as The Toro Company (NYSE:TTC). Headquartered in Bloomington, Minnesota, The Toro Company (NYSE:TTC) designs, manufactures, markets, and sells professional turf maintenance equipment and services. The one-month return of The Toro Company (NYSE:TTC) was -6.58%, and its shares lost 10.23% of their value over the last 52 weeks. On September 23, 2025, The Toro Company (NYSE:TTC) stock closed at $77.11 per share, with a market capitalization of $7.546 billion.

Mairs & Power Balanced Fund stated the following regarding The Toro Company (NYSE:TTC) in its second quarter 2025 investor letter:

“The Fund’s Industrials sector overweight aided results in the first half of 2025, but selection within the sector more than offset this, resulting in an overall negative relative impact for the Fund. The Toro Company (NYSE:TTC), where the Fund has a meaningful position, reported slowing revenue growth on weaker consumer sales, and the company lowered its guidance, leading the stock to fall.”

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The Toro Company (NYSE:TTC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 36 hedge fund portfolios held The Toro Company (NYSE:TTC) at the end of the second quarter, compared to 37 in the previous quarter. While we acknowledge the risk and potential of The Toro Company (NYSE:TTC) 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 The Toro Company (NYSE:TTC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered The Toro Company (NYSE:TTC) and shared a bullish thesis 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.