Core Insights - Diamond Hill Capital's "Small Cap Strategy" underperformed the Russell 2000 Index in Q3 2025, returning 7.93% compared to the index's over 12% gain [1] - The underperformance was attributed to the rally being driven by sectors not typically held in the portfolio [1] Company Overview: Mesa Laboratories, Inc. (NASDAQ:MLAB) - Mesa Laboratories, Inc. is a provider of life sciences tools and quality control products and services [2][3] - The stock experienced a one-month return of -0.22% and a 52-week loss of 33.24%, closing at $77.74 with a market capitalization of $429.304 million on November 24, 2025 [2] Performance Analysis - In Q3 2025, Mesa Laboratories was among the bottom contributors to the portfolio, facing challenges such as currency impacts, tariffs, and order timing delays [3] - Despite these challenges, the sterilization and disinfection control segment showed solid core growth, indicating resilience in the company's diversified portfolio [3] Hedge Fund Interest - Mesa Laboratories was held by 12 hedge fund portfolios at the end of Q2 2025, an increase from 8 in the previous quarter [4] - While the company has potential as an investment, certain AI stocks are viewed as offering greater upside potential with less downside risk [4]

Company Performance - Mettler-Toledo reported quarterly earnings of $10.09 per share, exceeding the Zacks Consensus Estimate of $9.58 per share, and showing an increase from $9.65 per share a year ago, representing an earnings surprise of +5.32% [1] - The company achieved revenues of $983.22 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.67% and increasing from $946.75 million year-over-year [2] - Over the last four quarters, Mettler-Toledo has consistently surpassed consensus EPS and revenue estimates [2] Stock Outlook - Mettler-Toledo shares have increased approximately 3.5% since the beginning of the year, while the S&P 500 has gained 8.2% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $10.57, with expected revenues of $987.38 million, and for the current fiscal year, the EPS estimate is $41.55 on revenues of $3.93 billion [7] Industry Context - The Medical - Instruments industry, to which Mettler-Toledo belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]