Primo Brands (PRMB) Positioned to Capitalize on Surging Bottled Water Consumption

Aristotle Capital Boston, LLC, an investment advisor, released its “Small/Mid Cap Equity Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. small/mid-cap equities reported solid results in the third quarter, driven by a favorable macroeconomic backdrop. In the third quarter, the strategy delivered a return of 2.57% net of fees (3.07% gross of fees), underperforming the 9.00% total return of the Russell 2500 Index. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Aristotle Capital Small/Mid Cap Equity Strategy highlighted stocks such as Primo Brands Corporation (NYSE:PRMB). Primo Brands Corporation (NYSE:PRMB) is a branded beverage company. The one-month return of Primo Brands Corporation (NYSE:PRMB) was 2.19%, and its shares lost 16.27% of their value over the last 52 weeks. On October 31, 2025, Primo Brands Corporation (NYSE:PRMB) stock closed at $21.97 per share, with a market capitalization of $8.206 billion.

Aristotle Capital Small/Mid Cap Equity Strategy stated the following regarding Primo Brands Corporation (NYSE:PRMB) in its third quarter 2025 investor letter:

“Primo Brands Corporation (NYSE:PRMB), is a branded beverage company focused on healthy hydration. The company is the top player in U.S. bottled water with approximately 19% market share. The portfolio of brands is well diversified across distribution channels, product format, sizes and price points that allow the company to cost efficiently reach 90% of the U.S. population. Increasing consumption of bottled water should be supported by concerns about municipal tap water quality, the wellness movement leading to lower consumption of soda, juice, and alcoholic beverages, and innovation in water flavors and premium products attracting consumers toward the category.”

Primo Brands Corporation (NYSE:PRMB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 72 hedge fund portfolios held Primo Brands Corporation (NYSE:PRMB) at the end of the second quarter, up from 66 in the previous quarter.  While we acknowledge the risk and potential of Primo Brands Corporation (NYSE:PRMB) 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 Primo Brands Corporation (NYSE:PRMB) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Primo Brands Corporation (NYSE:PRMB) and shared Baron Discovery Fund’s views on the company. 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.