What Happened?
Shares of medical products company UFP Technologies (NASDAQ: UFPT) jumped 9.9% in the afternoon session after the company delivered an encouraging quarter, surpassing analysts' expectations for revenue, EPS, and EBITDA. Sales surged 41.9% y/y, driven by strong performance in the MedTech segment, which grew 48.6%, while other markets saw a modest decline. Profitability improved as gross margins expanded to 29.2%, helping the company deliver the earnings beat.
Looking ahead, UFPT remains focused on scaling its operations, particularly in the Dominican Republic, to support increased demand in robotic surgery. The company also highlighted plans for two major program launches in the second half of 2025, further strengthening its growth outlook. Overall, this was a strong quarter, with impressive top-line growth and expanding margins.
Is now the time to buy UFP Technologies? Access our full analysis report here, it’s free.
What The Market Is Telling Us
UFP Technologies’s shares are very volatile and have had 20 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
UFP Technologies is up 8% since the beginning of the year, but at $265.96 per share, it is still trading 25.8% below its 52-week high of $358.42 from September 2024. Investors who bought $1,000 worth of UFP Technologies’s shares 5 years ago would now be looking at an investment worth $5,431.
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
