Here’s Why Diamond Hill Mid Cap Composite Purchased Revvity (RVTY) in Q3

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 Revvity, Inc. (NYSE:RVTY). Revvity, Inc. (NYSE:RVTY) is a health sciences solutions, technologies, and services company. The one-month return for Revvity, Inc. (NYSE:RVTY) was -5.16%, and its shares lost 12.70% over the last 52 weeks. On December 30, 2025, Revvity, Inc. (NYSE:RVTY) stock closed at $97.43 per share, with a market capitalization of $11.309 billion.

Diamond Hill Mid Cap Strategy stated the following regarding Revvity, Inc. (NYSE:RVTY) 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 Toro Company, Equitable Holdings, Cooper Companies and Revvity, Inc. (NYSE:RVTY).

Revvity, Inc. (NYSE:RVTY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 22 hedge fund portfolios held Revvity, Inc. (NYSE:RVTY) at the end of the third quarter, compared to 27 in the previous quarter. In Q3 2025, Revvity, Inc. (NYSE:RVTY) reported revenue of $699 million, resulting in 1% organic growth. While we acknowledge the potential of Revvity, Inc. (NYSE:RVTY) 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 the best short-term AI stock.