Strong Results and Raised Guidance Lifted Willdan Group (WLDN)

Wasatch Global Investors, an asset management company, released its “Wasatch Micro-Cap Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Microcap stocks reported strong results in the quarter, due to the consistent risk appetite of investors. The fund—Investor Class returned 9.52% in the quarter but lagged the benchmark Russell Microcap® Growth Index’s 19.93% 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, Wasatch Micro-Cap Fund highlighted stocks such as Willdan Group, Inc. (NASDAQ:WLDN). Willdan Group, Inc. (NASDAQ:WLDN) offers professional, technical, and consulting services that operate in the Energy and Engineering and Consulting segments. The one-month return of Willdan Group, Inc. (NASDAQ:WLDN) was 8.76%, and its shares gained 167.72% of their value over the last 52 weeks. On December 16, 2025, Willdan Group, Inc. (NASDAQ:WLDN) stock closed at $103.77 per share, with a market capitalization of $1.53 billion.

Wasatch Micro-Cap Fund stated the following regarding Willdan Group, Inc. (NASDAQ:WLDN) in its third quarter 2025 investor letter:

“Leading individual contributors included utility consulting firm Willdan Group, Inc. (NASDAQ:WLDN), which posted strong earnings and raised guidance in the quarter. The company uses software and analytics to help utilities optimize the distribution of energy across the power grid. Willdan’s growth trajectory has benefited from a significant increase in spending by utility companies that is driven by rising energy demand from data centers as well as the near-term strain on energy production resulting from the California wildfires. The company has been winning large contracts that provide significant visibility into earnings over the next several years.”

Willdan Group, Inc. (NASDAQ:WLDN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Willdan Group, Inc. (NASDAQ:WLDN) at the end of the third quarter, which was 25 in the previous quarter. While we acknowledge the risk and potential of Willdan Group, Inc. (NASDAQ:WLDN) 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 WILLDAN GROUP, INC. (NASDAQ:WLDN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Willdan Group, Inc. (NASDAQ:WLDN) and shared the list of best infrastructure stocks to buy with huge upside. 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.