What Makes Teleflex (TFX) an Investment Choice?

Palm Valley Capital Management, an investment management firm, has released the “Palm Valley Capital Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, Palm Valley Capital Fund appreciated 2.35% compared to a 9.11% gain for the S&P SmallCap 600 and a 7.99% rise in the Morningstar Small Cap Total Return Index. At the start of the quarter, the Fund invested 73.5% in cash equivalents, increasing slightly to 74.1% by the end of the quarter. Small-cap stocks performed ahead of large caps during the period, with the anticipation of Fed easing and reduced concerns about the impact of tariffs on corporate profits. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Palm Valley Capital Fund highlighted stocks such as Teleflex Incorporated (NYSE:TFX). Teleflex Incorporated (NYSE:TFX) engages in the development and manufacturing of single-use medical devices for diagnostic and therapeutic procedures. The one-month return of Teleflex Incorporated (NYSE:TFX) was -2.61%, and its shares lost 45.87% of their value over the last 52 weeks.  On October 7, 2025, Teleflex Incorporated (NYSE:TFX) stock closed at $126.89 per share, with a market capitalization of $5.608 billion.

Palm Valley Capital Fund stated the following regarding Teleflex Incorporated (NYSE:TFX) in its third quarter 2025 investor letter:

“Teleflex Incorporated (NYSE:TFX) produces single-use medical devices (92% of revenue) used by hospitals and healthcare providers in critical care and surgical procedures, including catheters, stents, clips, and tools used in anesthesia, respiratory, and urological applications. The company’s stock has been punished due to short-term revenue weakness in certain categories in addition to investor uncertainty about recent major strategic decisions, including a large, debt financed acquisition announced in February on the same day that management presented a plan to split the business into two independent companies. Teleflex offers revenue stability with high operating margins and generous free cash flow. Shares are trading near a record low valuation despite above-average business quality.”

Why Teleflex Inc. (TFX) Went Down On Friday?

 

Teleflex Incorporated (NYSE:TFX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 43 hedge fund portfolios held Teleflex Incorporated (NYSE:TFX) at the end of the second quarter, up from 41 in the previous quarter. In the second quarter of 2025, Teleflex Incorporated (NYSE:TFX) reported revenues of $780.9 million, an increase of 4.2% year-over-year. While we acknowledge the risk and potential of Teleflex Incorporated (NYSE:TFX) 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 Teleflex Incorporated (NYSE:TFX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Teleflex Incorporated (NYSE:TFX) and shared the list of cheap healthcare stocks to buy. In addition, please check out our hedge fund investor letters Q3 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.