Should You Add Toro Company (TTC) to Your Portfolio?
Diamond Hill Capital, an investment management company, released its “Mid Cap Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Markets continued their rally in the third quarter, with US stocks gaining over 8% as measured by the Russell 3000 Index. Small-cap stocks experienced the strongest quarterly performance, rising by more than 12%, whereas large-cap stocks increased by about 8%, and mid-cap stocks saw a gain of 5%. The strategy underperformed the Russell Midcap Index in the third quarter, returning 4.49% net vs. 5.33% for the Index. For more information on the fund’s top picks in 2025, please check its top five holdings.
In its third-quarter 2025 investor letter, Diamond Hill Mid Cap Strategy highlighted stocks such as The Toro Company (NYSE:TTC). Headquartered in Bloomington, Minnesota, The Toro Company (NYSE:TTC) designs, manufactures, markets, and sells professional turf maintenance equipment and services. The one-month return of The Toro Company (NYSE:TTC) was 13.21%, and its shares lost 0.74% of their value over the last 52 weeks. On December 30, 2025, The Toro Company (NYSE:TTC) stock closed at $79.51 per share, with a market capitalization of $7.78 billion.
Diamond Hill Mid Cap Strategy stated the following regarding The Toro Company (NYSE:TTC) in its third quarter 2025 investor letter:
"Though markets have continued rising throughout the year, we have continued finding individual companies whose prices we believe are not reflective of their long-term growth outlooks. Accordingly, we initiated several new positions in Q3, including The Toro Company (NYSE:TTC), Equitable Holdings, Cooper Companies and Revvity.
The Toro Company (NYSE:TTC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 29 hedge fund portfolios held The Toro Company (NYSE:TTC) at the end of the third quarter, compared to 36 in the previous quarter. While we acknowledge the potential of The Toro Company (NYSE:TTC) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on thebest short-term AI stock.
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