Should You Invest in Ituran Location and Control Ltd. (ITRN)?

Renaissance Investment Management, an investment management company, released its Q1 2025 “International Small Cap Equity Strategy” investor letter. A copy of the letter can be downloaded here. International equities began the year positively, recording strong gains despite increased geopolitical and tariff risks. Investors rotate away from US stocks due to concerns over the weakening US economy, which enabled international equities to achieve their best quarter. Decline in the U.S. Dollar Index offered additional support to international equities. However, the portfolio returns were negative on both an absolute basis and relative to the benchmark in the first quarter.  For more information on the fund’s best picks in 2025, please check its top five holdings.

In its first-quarter 2025 investor letter, Renaissance International Small Cap Equity Strategy highlighted stocks such as Ituran Location and Control Ltd. (NASDAQ:ITRN). Headquartered in Azor, Israel, Ituran Location and Control Ltd. (NASDAQ:ITRN) provides location-based telematics services and machine-to-machine telematics products. The one-month return of Ituran Location and Control Ltd. (NASDAQ:ITRN) was -3.21%, and its shares gained 42.11% of their value over the last 52 weeks.  On June 18, 2025, Ituran Location and Control Ltd. (NASDAQ:ITRN) stock closed at $35.57 per share, with a market capitalization of $707.615 million.

Renaissance International Small Cap Equity Strategy stated the following regarding Ituran Location and Control Ltd. (NASDAQ:ITRN) in its Q1 2025 investor letter:

“During the quarter, we purchased Ituran Location and Control Ltd. (NASDAQ:ITRN) (Israel), which sells stolen vehicle recovery equipment and services in Israel and Latin America. The company has steadily grown its subscriber base by developing relationships with major car manufacturers as well as banks and insurance companies. Margins should continue to rise as Ituran benefits from operating leverage with each new subscriber contributing meaningfully to gross margins.”

A technician calibrating a telematics device in a central control room.

Ituran Location and Control Ltd. (NASDAQ:ITRN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 10 hedge fund portfolios held Ituran Location and Control Ltd. (NASDAQ:ITRN) at the end of the first quarter, which was 15 in the previous quarter. Ituran Location and Control Ltd. (NASDAQ:ITRN) reported a record revenue of $86.5 million in Q1 2025, a 2% increase compared to Q1 2024. While we acknowledge the potential of Ituran Location and Control Ltd. (NASDAQ:ITRN) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Ituran Location and Control Ltd. (NASDAQ:ITRN) and shared Vulcan Value Partners’ views on the company. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of ITRN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.