Meet the Little-Known Growth Stock I'm Buying Hand Over Fist in 2025 After a Recent Dip in Price

Core Insights - UFP Technologies has experienced a remarkable share price increase of 12,040% over the past 25 years, turning a $10,000 investment into over$1.2 million, and is currently available at a discount following a 27% dip in share price [1] Group 1: Business Overview - UFP Technologies serves 26 of the 30 largest medical device manufacturers, providing a variety of single-use components and solutions for the medtech industry, including surgical drapes, medical beds, and sterile packaging [3][4] - The company has multiple differentiators that enhance its competitive advantage, including exclusive access to medical-grade materials, numerous patents, high switching costs for customers, and a focus on essential product niches [9] Group 2: Strategic Partnerships - In 2024, UFP signed a four-year, $500 million agreement with Intuitive Surgical to supply sterile drapes for robotic-assisted surgeries, which is expected to drive growth in a rapidly expanding industry [5][6] Group 3: Financial Performance - UFP has achieved a 13% annualized sales growth rate and a 26% annual growth in net income over the past decade, primarily by focusing on higher-margin products [7][8] - The company has begun exploring mergers and acquisitions, adding four companies in the summer of 2024, which is expected to create a flywheel effect for profitability [10][11] Group 4: Valuation and Growth Potential - Following a recent 27% drop, UFP trades at 29 times forward earnings, which is favorable compared to the S&P 500's average of 24, especially given UFP's 24% annual net income growth over the last decade [12] - With industry tailwinds from robotic-assisted surgery, a widening moat, and potential for M&A growth, UFP is positioned for continued success [13]