Varex Imaging (VREX) Bounced Back from Liberation Day Sell-Off

Core Insights - The RAM Smid Composite reported a 10.70% increase in Q3 2025, outperforming the Russell 2500 Value Total Return Index which gained 8.17% [1] - Year-to-date, the composite returned 9.29%, matching the benchmark's performance [1] - Smaller market cap indices in the Russell family outperformed larger counterparts in Q3 2025 [1] Company Analysis: Varex Imaging Corporation (NASDAQ:VREX) - Varex Imaging Corporation was the top performer in the RAM Smid Composite for Q3 2025, achieving a return of 43.02% [3] - The stock price recovery followed a sell-off, as investors reassessed the impact of tariffs, which were not as severe as initially feared [3] - Varex's business in China has shown improvement, and the company has flexibility in production to mitigate tariff impacts [3] - Despite a one-month return of -3.27% and a 52-week loss of 1.06%, Varex's revenue for Q3 2025 was $203 million, exceeding guidance [2][4] - Varex is not among the 30 most popular stocks among hedge funds, with 22 hedge fund portfolios holding the stock at the end of Q2 2025, down from 25 in the previous quarter [4] - The company is considered undervalued, with potential in the healthcare CT market recovery and growing security screening offerings [3]