Will Cactus (WHD) be Able to Accelerate International Expansion with the New Acquisition?

TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. During the quarter, the fund returned 11.28% (gross) and 11.02% (net), compared to the Russell 2000 Growth Index by 11.97%. Equities posted double-digit returns in the second quarter as global economic activity measures lifted. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, TimesSquare Capital Small Cap Growth Strategy highlighted stocks such as Cactus, Inc. (NYSE:WHD). Cactus, Inc. (NYSE:WHD) designs and manufactures pressure control and spoolable pipes. The one-month return of Cactus, Inc. (NYSE:WHD) was 2.99%, and its shares lost 25.29% of their value over the last 52 weeks. On September 10, 2025, Cactus, Inc. (NYSE:WHD) stock closed at $41.42 per share, with a market capitalization of $2.853 billion.

TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding Cactus, Inc. (NYSE:WHD) in its second quarter 2025 investor letter:

“We often see the ebb and flow of the Energy sector tied to underlying commodity prices. In this area, we seek low-cost exploration & production companies with high-yielding acreage or specialized service providers. Cactus, Inc. (NYSE:WHD), a manufacturer of highly engineered wellhead systems and pressure control equipment, slipped -5%. Their first quarter results were above the consensus, aided by higher sales content in pressure control equipment. In June, the company acquired a majority stake in Surface Pressure Control, which enables them to accelerate international expansion. Management’s outlook anticipates further declines in U.S. land activity over the balance of the year.”

Cactus, Inc. (NYSE:WHD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held Cactus, Inc. (NYSE:WHD) at the end of the second quarter, which was 23 in the previous quarter. Cactus, Inc. (NYSE:WHD) reported revenue of $274 million in Q2 2025, representing a sequential decline of 2.4%. While we acknowledge the risk and potential Cactus, Inc. (NYSE:WHD) 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 Cactus, Inc. (NYSE:WHD) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Cactus, Inc. (NYSE:WHD) and shared TimesSquare Capital U.S. Small Cap Growth Strategy’s views on the company in the previous quarter. 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.