Vestis (US:VSTS) Yahoo Finance·2025-12-16 12:55Core Insights - Riverwater Partners' Small Cap Strategy reported solid results for Q3 2025 but lagged behind the benchmark due to the market's preference for lower-quality companies [1] - The strategy focuses on higher-quality companies with strong fundamentals and a clear path to profitability, positioning itself well for challenging market conditions [1] - Vestis Corporation (NYSE:VSTS) was highlighted as a stock of interest, showing a one-month return of 38.46% but a significant 53.07% decline over the past 52 weeks [2] Company Analysis - Vestis Corporation is undergoing a business turnaround, which is expected to take longer than initially anticipated, compounded by a debt overhang that may hinder reinvestment [3] - The company is not among the 30 most popular stocks among hedge funds, with 27 hedge fund portfolios holding its shares at the end of Q3 2025, down from 34 in the previous quarter [4] - While Vestis Corporation has potential, the company is viewed as less favorable compared to certain AI stocks that are believed to offer greater upside potential and lower downside risk [4]