Should You Invest in Universal Technical Institute (UTI)?

ClearBridge Investments, an investment management company, released its “ClearBridge Small Cap Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets made an exceptional recovery from steep declines in April with solid performances in May and June. The strategy modestly underperformed the Russell 2000 Growth Index in the quarter, as the market rally was driven by lower market capitalization, lower-quality non-earners, and a retail volume surge favoring momentum and the riskiest stocks. 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 Growth Strategy highlighted stocks such as Universal Technical Institute, Inc. (NYSE:UTI). Universal Technical Institute, Inc. (NYSE:UTI) offers transportation, skilled trades, and healthcare education programs. The one-month return of Universal Technical Institute, INC. (NYSE:UTI) was 16.82%, and its shares gained 104.15% of their value over the last 52 weeks. On October 2, 2025, Universal Technical Institute, INC. (NYSE:UTI) stock closed at $31.46 per share, with a market capitalization of $1.712 billion.

ClearBridge Small Cap Growth Strategy stated the following regarding Universal Technical Institute, Inc. (NYSE:UTI) in its second quarter 2025 investor letter:

“Universal Technical Institute, Inc. (NYSE:UTI) is a national provider of trade schools across a variety of medical and industrial end markets. We see secular demand for this industry leader to expand its programs geographically and by program type to address skilled employee shortages.”

Universal Technical Institute, Inc. (NYSE:UTI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 30 hedge fund portfolios held Universal Technical Institute, Inc. (NYSE:UTI) at the end of the second quarter, up from 29 in the previous quarter. While we acknowledge the risk and potential of Universal Technical Institute, Inc. (NYSE:UTI) 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 Universal Technical Institute, Inc. (NYSE:UTI) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Universal Technical Institute, Inc. (NYSE:UTI) and shared the list of stocks Jim Cramer talked about. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

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