What Makes Hillman Solutions Corp. (HLMN) a Resilient Stock?

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. In the quarter, the Conestoga Small Cap Composite returned -1.4% net-of-fees, underperforming the Russell 2000 Growth Index’s impressive 12.2% gain. Most of the Index’s gains come from low-quality stock leadership, where unprofitable, high-beta names have considerably outperformed. 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 Hillman Solutions Corp. (NASDAQ:HLMN). Hillman Solutions Corp. (NASDAQ:HLMN) offers hardware-related products and related merchandising services. The one-month return of Hillman Solutions Corp. (NASDAQ:HLMN) was -0.64%, and its shares lost 13.06% of their value over the last 52 weeks. On October 17, 2025, Hillman Solutions Corp. (NASDAQ:HLMN) stock closed at $9.32 per share, with a market capitalization of $1.842 billion.

Conestoga Capital Advisors stated the following regarding Hillman Solutions Corp. (NASDAQ:HLMN) in its third quarter 2025 investor letter:

“Hillman Solutions Corp. (NASDAQ:HLMN) is a leading provider of hardware and protective solutions to retailers, professional contractors, and consumers across North America. Demand for hardware, fasteners, and home improvement solutions continued to prove resilient despite a mixed retail environment. Cost efficiencies, inventory discipline, and better working capital management improved free cash flow, allowing debt reduction and strengthening investor confidence.”

Is Hillman Solutions Corp. (HLMN) The Most Undervalued Stock With Smart Money Ratings?

Hillman Solutions Corp. (NASDAQ:HLMN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 24 hedge fund portfolios held Hillman Solutions Corp. (NASDAQ:HLMN) at the end of the second quarter, compared to 21 in the previous quarter. In the second quarter of 2025, Hillman Solutions Corp. (NASDAQ:HLMN) reported net sales of $402.8 million, reflecting a 6.2% increase compared to the second quarter of 2024. While we acknowledge the risk and potential of Hillman Solutions Corp. (NASDAQ:HLMN) 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 Hillman Solutions Corp. (NASDAQ:HLMN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Hillman Solutions Corp. (NASDAQ:HLMN) and shared Madison Small Cap Fund’s views on the company in the previous quarter. Hillman Solutions Corp. (NASDAQ:HLMN) detracted from Conestoga Capital Advisors’ performance in the previous quarter due to investor concerns oven the potential impact of higher tariff-related costs. 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.