Burke Wealth Management, an investment management company, released its “Focused Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter was marked by significant volatility. Against this backdrop, the strategy returned +15.9% in the quarter compared to +10.9% for the S&P 500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its second-quarter 2025 investor letter, Burke Wealth Management highlighted stocks such as BWX Technologies, Inc. (NYSE:BWXT). Headquartered in Lynchburg, Virginia, BWX Technologies, Inc. (NYSE:BWXT) is a nuclear component manufacturing and distributing company. The one-month return of BWX Technologies, Inc. (NYSE:BWXT) was 8.85%, and its shares gained 60.85% of their value over the last 52 weeks. On August 22, 2025, BWX Technologies, Inc. (NYSE:BWXT) stock closed at $163.09 per share, with a market capitalization of $14.906 billion.
Burke Wealth Management stated the following regarding BWX Technologies, Inc. (NYSE:BWXT) in its second quarter 2025 investor letter:
“BWX Technologies, Inc. (NYSE:BWXT): When searching for a business that provides stability in an uncertain world, one would be hard pressed to find a better fit than BWX Technologies. BWXT is a sole source provider of the components that allow for nuclear propulsion in the US Navy’s nuclear submarine fleet. These are multi-decade programs and US superiority in nuclear submarine technology is an essential deterrent to Chinese aggression. Government operations account for roughly 80% of BWXT’s revenues and given the sensitive nature of its role in the Navy’s nuclear submarine program, this part of the business is on lockdown. In addition to the stability of its government contracts, BWXT also has several intriguing growth kickers. In addition to the continued growth of the US Navy’s nuclear submarine program, the US has reached agreement with Australia to sell them nuclear submarines as part of a joint effort to contain China. This provides a tailwind to BWXT’s core nuclear propulsion business. Beyond the core, BWXT provides component parts to small module nuclear reactors. Presently, the greatest constraint facing the AI revolution is the electricity required to power the datacenter buildout. Hyperscalers are looking for novel solutions beyond the current electrical grid and the use of small module nuclear reactors is an intriguing solution to this problem. BWXT’s expertise in nuclear components coupled with the urgent need for alternative energy solutions to power data centers and the Trump administration’s commitment to reducing the burdensome regulation that has made advances in nuclear power close to impossible in the past makes this a potential source of material growth upside. Finally, BWXT is an agnostic way to participate in the emerging field of radiopharmaceuticals. BWXT provides isotopes to a number of drug companies pursuing treatments via the use of radioisotopes. Presently, BWXT partner companies have over 90 drugs at various stages of the FDA approval process. This provides plenty of shots on goal in an intriguing and developing part of the pharmaceutical industry. Overall, BWX Technologies is a glove fit for what we look for in the relatively stable portion of our portfolio. The company pairs tremendous visibility in the core part of its business that is delivering mid-single digit profit growth with some exciting opportunities in tangential markets that can drive growth much higher. We added BWXT to the portfolio at a 3% weighting in April.”
An aerial view of a nuclear plant, its domes casting a unique shadow.
BWX Technologies, Inc. (NYSE:BWXT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held BWX Technologies, Inc. (NYSE:BWXT) at the end of the second quarter, which was 52 in the previous quarter. BWX Technologies, Inc. (NYSE: BWXT) reported second quarter revenue of $764 million, reflecting a 12% increase, driven by growth in both of its segments. While we acknowledge the risk and potential of BWX Technologies, Inc. (NYSE:BWXT) 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 BWX Technologies, Inc. (NYSE:BWXT) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered BWX Technologies, Inc. (NYSE:BWXT) and shared Jim Cramer’s bold predictions about quantum computing and nuclear power stocks. In addition, please check out our hedge fund investor letters Q2 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.
