Ducommun (DCO) is Benefitting From Strong Demand

5 days ago 6

Soumya Eswaran

Tue, November 25, 2025 astatine 7:31 AM CST 3 min read

Diamond Hill Capital, an concern absorption company, released its “Small Cap Strategy” third-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. Markets continued their rally successful the 3rd quarter, with small-cap stocks gaining implicit 12% arsenic measured by the Russell 2000 Index. However, the portfolio trailed the Russell 2000 Index successful the quarter, returning 7.93% (net of fees). The comparative underperformance was chiefly owed to the rally being driven by sectors that the portfolio typically does not own. For much accusation connected the fund’s apical picks successful 2025, delight cheque its apical 5 holdings.

In its third-quarter 2025 capitalist letter, Diamond Hill Capital Small Cap Strategy highlighted stocks specified arsenic Ducommun Incorporated (NYSE:DCO). Headquartered successful Costa Mesa, California, Ducommun Incorporated (NYSE:DCO) provides engineering and manufacturing services to the aerospace, defense, industrial, and aesculapian industries. The one-month instrumentality of Ducommun Incorporated (NYSE:DCO) was -6.24%, and its shares gained 31.04% of their worth implicit the past 52 weeks. On November 24, 2025, Ducommun Incorporated (NYSE:DCO) banal closed astatine $87.27 per share, with a marketplace capitalization of $1.304 billion.

Diamond Hill Capital Small Cap Strategy stated the pursuing regarding Ducommun Incorporated (NYSE:DCO) successful its 3rd 4th 2025 capitalist letter:

"Other apical contributors successful Q3 included Red Rock Resorts, US Lime & Minerals and Ducommun Incorporated (NYSE:DCO). Ducommun is simply a captious Tier 1 and Tier 2 supplier of precocious worldly aerostructures and electrical components to the defence and commercialized markets. Boeing is consistently producing its 737 Max airplane astatine a complaint of 38 per month, which could summation to 42 per period by the extremity of 2025 — and Ducommun expects it volition beryllium capable to proviso Boeing astatine a complaint astir adjacent to its accumulation complaint by the mediate of 2026. Ducommun is besides benefiting from beardown request successful its rocket programs amid heightened geopolitical tensions globally."

Ducommun Incorporated (NYSE:DCO) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. According to our database, 20 hedge money portfolios held Ducommun Incorporated (NYSE:DCO) astatine the extremity of the 2nd quarter, up from 15 successful the erstwhile quarter. In the 3rd quarter, Ducommun Incorporated (NYSE:DCO) reported grounds quarterly gross of $212.6 million, marking an summation of 6% implicit past year. While we admit the imaginable of Ducommun Incorporated (NYSE:DCO) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.