Solid Demand Sent EVI Industries (EVI) Higher in Q3

Conestoga Capital Advisors, an asset management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets continued their momentum that began in early April, reaching new all-time highs in the third quarter. Conestoga Smid Cap Composite underperformed the Russell 2500 Growth Index in the quarter and returned -1.1% net-of-fees vs +10.7% for the index. The narrow and “low quality” leadership in the stock market rally that began in April grew stronger in the third quarter. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2025.

In its third-quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as EVI Industries, Inc. (AMEX:EVI). Headquartered in Miami, Florida, EVI Industries, Inc. (AMEX:EVI) is a distributor of commercial and industrial laundry and dry-cleaning equipment and steam and hot water boilers. The one-month return of EVI Industries, Inc. (AMEX:EVI) was -20.21%, and its shares gained 42.64% of their value over the last 52 weeks. On October 17, 2025, EVI Industries, Inc. (AMEX:EVI) stock closed at $27.52 per share, with a market capitalization of $346.233 million.

Conestoga Capital Advisors stated the following regarding EVI Industries, Inc. (AMEX:EVI) in its third quarter 2025 investor letter:

“EVI Industries, Inc. (AMEX:EVI) is a distributor and consolidator of commercial laundry and dry-cleaning equipment, parts, and related services across the United States. EVI has benefited from solid demand for commercial laundry equipment and services and after years of investment we anticipate a meaningful improvement in margins following its acquisition of the highly profitable Girbau North America. The stock also benefitted from rising investor awareness after receiving its first ever sell side analyst coverage in June.”

EVI Industries, Inc. (AMEX:EVI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 2 hedge fund portfolios held EVI Industries, Inc. (AMEX:EVI) at the end of the second quarter, compared to 3 at the end of the previous quarter.  While we acknowledge the risk and potential of EVI Industries, Inc. (AMEX:EVI) 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 EVI Industries, Inc. (AMEX:EVI) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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.