Should You Be Confident in Merit Medical Systems’ (MMSI) Long-Term Outlook?

Carillon Tower Advisers, an investment management company, released its “Carillon Eagle Small Cap Growth Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets sustained their upward rally from April’s lows, driven by AI acceleration, reduced inflationary impacts from tariffs, and prospects for further interest rate cuts from the U.S. Federal Reserve. Small-cap stocks mirrored the rally by extending the momentum in the quarter. The Russell 2000® Growth Index was up 12.19% in the quarter, modestly underperforming the Russell 2000 Value Index’s 12.60% return. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Carillon Eagle Small Cap Growth Fund highlighted stocks such as Merit Medical Systems, Inc. (NASDAQ:MMSI). Merit Medical Systems, Inc. (NASDAQ:MMSI) is a single-use medical products manufacturer. The one-month return of Merit Medical Systems, Inc. (NASDAQ:MMSI) was -0.53%, and its shares lost 13.67% of their value over the last 52 weeks. On October 28, 2025, Merit Medical Systems, Inc. (NASDAQ:MMSI) stock closed at $82.79 per share, with a market capitalization of $4.903 billion.

Carillon Eagle Small Cap Growth Fund stated the following regarding Merit Medical Systems, Inc. (NASDAQ:MMSI) in its third quarter 2025 investor letter:

“Merit Medical Systems, Inc. (NASDAQ:MMSI) designs, manufactures and markets single-use medical devices for interventional, diagnostic and therapeutic procedures, primarily in cardiology, radiology, oncology and endoscopy. The stock declined during the quarter following a misstep in the reimbursement application for its new WRAPSODY product, delaying its revenue contribution by several months. The inability to secure transitional pass-through status could pressure margins, and sales may fall short of initial expectations. Near-term sentiment took a hit with WRAPSODY positioned as a key growth driver and a new, differentiated patient treatment option within the marketplace. Despite this, we remain confident in the company’s long-term outlook.”

Merit Medical Systems, Inc. (NASDAQ:MMSI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held Merit Medical Systems, Inc. (NASDAQ:MMSI) at the end of the second quarter, up from 24 in the previous quarter. In the second quarter of 2025, Merit Medical Systems, Inc. (NASDAQ:MMSI) reported $382.5 million in revenues, up 13% year-over-year on a GAAP basis and up 12.5% year-over-year on a constant currency basis. While we acknowledge the risk and potential of Merit Medical Systems, Inc. (NASDAQ:MMSI) 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 Merit Medical Systems, Inc. (NASDAQ:MMSI) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Merit Medical Systems, Inc. (NASDAQ:MMSI) and shared Loomis Sayles Small Cap Growth Fund’s views on the company in the previous quarter. 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.