What Makes Verra Mobility (VRRM) an Attractive Investment?

Aristotle Capital Boston, LLC, an investment advisor, released its “Small Cap Equity Strategy” second quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter started with a risk-off environment from the previous quarter, but later regained momentum driven by broad-based elements. In the second quarter, the strategy delivered a return of 3.25% net of fees (3.41% gross of fees) underperforming the 8.50% total return of the Russell 2000 Index. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its second quarter 2025 investor letter, Aristotle Capital Small Cap Equity Strategy highlighted stocks such as Verra Mobility Corporation (NASDAQ:VRRM). Verra Mobility Corporation (NASDAQ:VRRM) is a technology company that provides smart mobility technology solutions. The one-month return of Verra Mobility Corporation (NASDAQ:VRRM) was -0.96%, and its shares lost 17.49% of their value over the last 52 weeks. On July 22, 2025, Verra Mobility Corporation (NASDAQ:VRRM) stock closed at $24.77 per share, with a market capitalization of $3.949 billion.

Aristotle Capital Small Cap Equity Strategy stated the following regarding Verra Mobility Corporation (NASDAQ:VRRM) in its second quarter 2025 investor letter:

“Verra Mobility Corporation (NASDAQ:VRRM), is a provider of automated enforcement, tolling, and parking technologies and solutions. We believe the company is well positioned to benefit from accelerating automated enforcement tailwinds as legislative support and expanding use cases drive adoption by municipalities seeking safer more efficient roadways. We also view the combination of highly recurring long-term contracted revenues, high margins, and high renewal rates as attractive qualities of the company’s business model.”

A municipal worker standing in the middle of an automated safety intersection to ensure its proper operation.

Verra Mobility Corporation (NASDAQ:VRRM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held Verra Mobility Corporation (NASDAQ:VRRM) at the end of the first quarter, which was 18 in the previous quarter. Verra Mobility Corporation’s (NASDAQ:VRRM) first quarter revenue increased 6% year-over-year to $223 million. While we acknowledge the risk and potential of Verra Mobility Corporation (NASDAQ:VRRM) 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 Verra Mobility Corporation (NASDAQ:VRRM) 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 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.