UFP Technologies, Inc. designs and manufactures solutions for medical devices, sterile packaging, and other highly engineered custom products. The company offers protective drapes for robotic surgery, single patient use surfaces, advanced wound care, infection prevention, disposables for surgical and endoscopic procedures, packaging for medical devices, orthopedic implants, biopharma drug manufacturing, and coils for catheters; and molded components for applications in acoustic insulation, interior trim, load floors, sunshades, SUV cargo cover handles, driveshaft damping, engine and manifold covers, quarter panels, and wheel liners. It also provides molded composites for commercial aviation and military gear for use in backpack components, knee and elbow pads, eyewear, and helmets; and reusable cases and custom for applications in military ballistics panels, virtual training systems, drones, communications equipment, and rugged portable computers. In addition, the company provides engineered products and components to customers in the automotive, aerospace and defense, and industrial markets for applications in military uniform and gear components, automotive interior trim, air filtration, and protective cases and inserts. It markets and sells its products through a direct sales force. The company was founded in 1963 and is headquartered in Newburyport, Massachusetts.

UFP Technologies, Inc.

Explore the exciting world of UFP Industries (NASDAQ: UFPT) with our contributing expert analysts in this Motley Fool Scoreboard episode. Check out the video below to gain valuable insights into market trends and potential investment opportunities!
*Stock prices used were the prices of Jul. 30, 2025. The video was published on Aug. 28, 2025.
Should you invest $1,000 in UFP Technologies right now?
Before you buy stock in UFP Technologies, consider this:
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and UFP Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $659,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,113,120!*
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*Stock Advisor returns as of August 25, 2025
Anand Chokkavelu, CFA has no position in any of the stocks mentioned. Lou Whiteman has no position in any of the stocks mentioned. Tyler Crowe has no position in any of the stocks mentioned. The Motley Fool recommends UFP Technologies. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

UFP Industries: A Strong Contender in a Fragmented Lumber Market

(RTTNews) - UFP Technologies, Inc. (UFPT) reported earnings for its second quarter that Increases, from last year
The company's bottom line totaled $17.18 million, or $2.21 per share. This compares with $13.55 million, or $1.75 per share, last year.
Excluding items, UFP Technologies, Inc. reported adjusted earnings of $19.39 million or $2.50 per share for the period.
The company's revenue for the period rose 37.2% to $151.17 million from $110.17 million last year.
UFP Technologies, Inc. earnings at a glance (GAAP) :
-Earnings: $17.18 Mln. vs. $13.55 Mln. last year. -EPS: $2.21 vs. $1.75 last year. -Revenue: $151.17 Mln vs. $110.17 Mln last year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

UFP Technologies, Inc. Reports Advance In Q2 Income

UFP Technologies (UFPT) came out with quarterly earnings of $2.5 per share, beating the Zacks Consensus Estimate of $2.29 per share. This compares to earnings of $1.86 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +9.17%. A quarter ago, it was expected that this packaging company and component manufacturer would post earnings of $2.05 per share when it actually produced earnings of $2.47, delivering a surprise of +20.49%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
UFP, which belongs to the Zacks Containers - Paper and Packaging industry, posted revenues of $151.18 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 0.95%. This compares to year-ago revenues of $110.18 million. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
UFP shares have lost about 7.3% since the beginning of the year versus the S&P 500's gain of 6.1%.
What's Next for UFP?
While UFP has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for UFP was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.47 on $155.08 million in revenues for the coming quarter and $9.75 on $611.16 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Containers - Paper and Packaging is currently in the bottom 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Sealed Air (SEE), another stock in the same industry, has yet to report results for the quarter ended June 2025. The results are expected to be released on August 5.
This packaging company is expected to post quarterly earnings of $0.72 per share in its upcoming report, which represents a year-over-year change of -13.3%. The consensus EPS estimate for the quarter has been revised 0.6% lower over the last 30 days to the current level.
Sealed Air's revenues are expected to be $1.32 billion, down 2% from the year-ago quarter.
Should You Invest in UFP Technologies, Inc. (UFPT)?
Before you invest in UFP Technologies, Inc. (UFPT), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.
Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

UFP Technologies (UFPT) Surpasses Q2 Earnings Estimates

Key Points
The market is approaching new highs again.
However, these promising growth stocks have yet to set new highs.
Although they haven't kept pace with the S&P 500 recently, these stocks offer investors market-beating potential over the long term.
Over the last few months, the S&P 500 has risen 24% from its 2025 low, and has begun setting new all-time highs.
This incredible ascension doesn't mean there are no enticingly priced stocks, though. Despite the market rebounding, many of the best growth stocks remain at least 10% below their highs. Here are 10 of my favorite growth stocks that are worth buying right now. (Numbers as of July 10, 2025.)
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
1. Shopify: 33% below all-time highs
Shares of the United States' leading e-commerce enabler, Shopify (NASDAQ: SHOP), are down 33% from their 2021 peak as i write this.
However, in the four years since that high, sales have grown from $4 billion to over $9 billion, giving the company a much more palatable valuation.
Much as Amazon revolutionized e-commerce alongside the internet's boom, Shopify aims to reimagine the industry as artificial intelligence (AI) gains prominence.
In 2023, the company launched Shopify Magic, an AI-powered toolbox that generates product descriptions and marketing campaigns, edits photos, and automates customer support. Then in 2024 it launched Sidekick, which helps merchants gather business insights, optimize inventory, and set pricing strategies, among things.
These AI solutions reinforce Shopify's mission of simplifying entrepreneurship, and should help it stay the top dog in the global e-commerce industry.
Shopify still accounts for only 12% of the U.S. e-commerce industry -- and less than 2% in its core international geographies -- so it should still have decades of growth ahead.
2. Global-E Online: 59% below all-time highs
Whereas Shopify streamlines the e-commerce experience for merchants, Global-E Online (NASDAQ: GLBE) does so for crossborder sales. Selling products to someone in a different country is complicated, and Global-E's e-commerce platform alleviates these difficulties for its merchants.
The company enables sales to over 200 countries, offering pricing in 100 currencies along with 150 payment options. It also provides access to 20 shipping carriers, messaging in 30 languages, tariff calculations, and zero-risk payment fraud management.
Its operations are so complex that Shopify chose to partner with Global-E rather than try to help its merchants sell internationally on its own.
FedEx estimates that crossborder sales will grow twice as fast as regular e-commerce purchases through 2030. This fact, paired with Global-E's 30% revenue growth and improving margins, makes it a promising investment.
3. DLocal: 84% below all-time highs
DLocal (NASDAQ: DLO) also helps merchants sell to customers in foreign countries, processing payments in emerging markets. It helps improve merchants' conversion rates by offering 900 local payment options in 40 countries across Latin America, Africa, and Asia.
However, since the company went public in 2021, its net profit margin has slid from above 30% to 19%, which helps explain its dramatic share price drop.
This margin compression is the result of a short-term trade-off DLocal is making. Rather than demanding lofty "take rates" up front, it's getting its foot in the door with major customers, such as Amazon, Spotify, Uber, Shopify, and Netflix.
Now woven into its megacustomers' ecosystems, DLocal can start to offer higher-margin solutions over time, increasing the portion it takes as it provides value to them. Early results look promising: DLocal's total payment volume (TPV) retention rate hit 144% last quarter.
Trading at 23 times earnings, while growing TPV by 53%, DLocal could be a steal today.
4. Nu Holdings: 18% below all-time highs
Serving 99 million active customers across Brazil, Mexico, and Colombia -- a figure that grew by 16 million over the last year -- Nu Holdings (NYSE: NU) is becoming one of the largest digital banks in the world.
Aside from its robust 25% net profit margin, Nu's growth in average revenue per active customer (ARPAC) is what makes the bank so intriguing.
ARPAC one year after a customer joins the bank is $4.80. After two years, this rises to $6.80. But after eight years, the figure spikes to $25.90, highlighting how the bank grows alongside its customers.
Furthermore, while Nu already counts 58% of the adult Brazilian population as customers, this percentage is much lower in the company's nascent growth markets: It's only 12% in Mexico, and 8% in Colombia.
The combination of ARPAC growth, geographic expansion potential, solid margins, and acceptable delinquency ratios makes Nu Holdings a stellar growth stock.
5. Duolingo: 30% below all-time highs
After quadrupling in value since their 2021 initial public offering (IPO), shares of the world's largest language-learning app, Duolingo (NASDAQ: DUOL), have declined by 30%.
Seeing daily active user (DAU) growth slow from 56% in February to 37% in June, the market reined in Duolingo's lofty valuation. While it's now trading at a more reasonable 61 times forward earnings estimates (down from 90 a few days ago), the company's improving margins and promising growth options could outgrow this valuation.
Whether it adds new courses (such as math or chess), offers more standardized tests, expands its advertising business, or deploys new AI use cases (like video chats with the fan-favorite character Lily), Duolingo has a growth story still in its early chapters.
6. Wingstop: 23% below all-time highs
In January and February, I wrote about Wingstop (NASDAQ: WING) being one of my favorite growth stocks. The Buffalo wing franchiser's shares have since rallied from a bit over $200 per share to over $300. Yet the best may still be ahead.
Wingstop currently has 2,563 locations, but management believes it can raise this number to 10,000 globally. If that sounds far-fetched, consider that the company already has 1,955 stores in its development pipeline.
And Wingstop isn't a one-trick pony relying upon store-count expansion to grow. It has 21 consecutive years of same-store sales growth, including a 20% increase in 2024.
Yes, the stock looks expensive at 69 times cash flow from operations (CFO). However, it had a similar valuation at its IPO in 2015, and has since become a 15-bagger, so I'm optimistic about the future.
7. Dutch Bros: 25% below all-time highs
Dutch Bros (NYSE: BROS) is a burgeoning handcrafted-beverage chain with a cult-like following among its customers. Much as with Wingstop, a lot of the interest in the company's stock stems from its potential for store-count growth.
Although it's already 1,000 shops strong, over 50% of the company's locations are in just three states: Oregon, California, and Texas. As Dutch Bros expands further into the Midwest and Southeast, management believes it could reach 7,000 locations.
Now that the company has reached breakeven on what it generates in cash flow from operations versus what it spends building new stores each year, it could become a compounding machine.
Already lauded for customer service and value for customers, Dutch Bros should continue to appeal as it expands to new states.
8. UFP Technologies: 30% below all-time highs
UFP Technologies (NASDAQ: UFPT) is a contract development and manufacturing organization for 26 of the 30 largest medical device manufacturers.
With the design capabilities and materials expertise necessary to manufacture new polymer-based medical devices, UFP collaborates with medical device makers to create new products. UFP's shining example of this process was designing drapes for Intuitive Surgical's robots to "wear" during surgeries.
Targeting niche use cases like this, the company relies on its strategy as a serial acquirer to grow, scooping up new complementary technologies as it goes.
Since UFP gets to handpick which devices it collaborates on with its customers -- typically high-margin, single-use products -- I expect its multibagging ways to continue far into the future.
9. The Trade Desk: 46% below all-time highs
The Trade Desk (NASDAQ: TTD) is the largest ad-buying platform for the open internet. As a demand-side platform focused on transparency, The Trade Desk stands in stark contrast to the closed systems of Meta Platforms, Amazon, and Alphabet's Google.
But, after the company reported earnings earlier this year that missed expectations for the first time in 33 quarters, its share price got crushed.
While a 60% drop in share price is alarming, the dramatic sell-off likely had more to do with the company trading at over 100 times its free cash flow (FCF) than with any fundamental issues with the business.
For instance, GroupM expects the advertising industry to grow by 7% in 2025. Given The Trade Desk's 25% Q1 sales growth, it's evident that the company is continuing to expand its market share.
As The Trade Desk continues to target three high-growth areas -- connected TV, premium audio, and international markets -- it's likely to outgrow its current price-to-FCF ratio of 55.
10. ASML: 27% below all-time highs
One of the simplest ways to invest in the ongoing AI boom may be to buy lithography juggernaut ASML (NASDAQ: ASML).
Lithography is the near-magic process of using ultraviolet light to etch nanoscopic patterns onto silicon wafers, which are used in the world's most powerful semiconductor chips. What makes ASML so interesting is that it's far and away the leader in this process. It holds a market share of over 50% in more mature deep ultraviolet lithography, and a monopoly in extreme ultraviolet lithography -- the most advanced process.
Although ASML will always remain exposed to geopolitical risks and cyclicality throughout the semiconductor supply chain, its importance to its customers (and thus, its sales) should grow over the long term.
McKinsey & Company expects the $600 billion semiconductor industry to grow to $1 trillion by 2030 and surpass $2 trillion by 2040, so ASML's lithography machines should remain essential for years to come.
With shares trading below their 10-year average price-to-earnings (P/E) ratio of 37, now looks like a great time to consider buying the company responsible for powering the semiconductor industry.
Should you invest $1,000 in Shopify right now?
Before you buy stock in Shopify, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Shopify wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $679,653!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,046,308!*
Now, it’s worth noting Stock Advisor’s total average return is 1,060% — a market-crushing outperformance compared to 179% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of July 15, 2025
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
Josh Kohn-Lindquist has positions in ASML, Alphabet, DLocal, Duolingo, Dutch Bros, Global-E Online, Netflix, Nu Holdings, Shopify, The Trade Desk, Uber Technologies, UFP Technologies, and Wingstop. The Motley Fool has positions in and recommends ASML, Alphabet, Amazon, FedEx, Global-E Online, Intuitive Surgical, Meta Platforms, Netflix, Shopify, Spotify Technology, The Trade Desk, and Uber Technologies. The Motley Fool recommends DLocal, Duolingo, Dutch Bros, Nu Holdings, Ufp Technologies, and Wingstop and recommends the following options: long January 2027 $7 calls on DLocal and short January 2027 $10 calls on DLocal. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

10 Growth Stocks Down 10% or More to Buy Right Now

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the SPDR Portfolio S&P 600 Small Cap ETF (Symbol: SPSM), we found that the implied analyst target price for the ETF based upon its underlying holdings is $53.39 per unit.
With SPSM trading at a recent price near $41.45 per unit, that means that analysts see 28.82% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of SPSM's underlying holdings with notable upside to their analyst target prices are Vital Energy, Inc (Symbol: VTLE), UFP Technologies Inc. (Symbol: UFPT), and Wolfspeed Inc (Symbol: WOLF). Although VTLE has traded at a recent price of $21.61/share, the average analyst target is 71.22% higher at $37.00/share. Similarly, UFPT has 49.56% upside from the recent share price of $216.30 if the average analyst target price of $323.50/share is reached, and analysts on average are expecting WOLF to reach a target price of $8.69/share, which is 44.63% above the recent price of $6.01. Below is a twelve month price history chart comparing the stock performance of VTLE, UFPT, and WOLF:
Below is a summary table of the current analyst target prices discussed above:
Name
Symbol
Recent Price
Avg. Analyst 12-Mo. Target
% Upside to Target
SPDR Portfolio S&P 600 Small Cap ETF
SPSM
$41.45
$53.39
28.82%
Vital Energy, Inc
VTLE
$21.61
$37.00
71.22%
UFP Technologies Inc.
UFPT
$216.30
$323.50
49.56%
Wolfspeed Inc
WOLF
$6.01
$8.69
44.63%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
Also see:
EXP Options Chain
Top Ten Hedge Funds Holding AOMR
ETFs Holding CUTR
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Sum Up The Parts: SPSM Could Be Worth $53

UFP Technologies (NASDAQ: UFPT) has seen its share price grow by 12,040% over the last 25 years, making it a 121-bagger. Had investors held their shares throughout that time, they would have turned a $10,000 investment into more than $1.2 million.
Despite this incredible run, UFP's multibagger story could still be in its early chapters -- and the company is now available to investors at a discount following a recent 27% dip in share price.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. See the 10 stocks »
Here's what this promising small-cap business does, along with the four main reasons I'm buying shares of the stock hand over fist in 2025.
1. UFP's widening moat
UFP Technologies counts 26 of the 30 largest medical device makers as customers. It designs and manufactures a wide assortment of single-use components and solutions for the medical technology (medtech) industry. Collaborating with its customers, UFP creates products like surgical drapes used in robotic surgery, medical beds, sterile packaging, numerous surgical components and sub-assemblies, and surgery ports and port cleaners.
While the company isn't home to a single, specific moat that gives it an advantage over its peers, it has numerous differentiators giving it a leg up on the competition, including:
Exclusive access to certain medical-grade materials thanks to multiple manufacturing certifications
Numerous patents tied to its products
High switching costs for customers due to its collaborative process and long-standing relationships
A focus on boring but hard-to-disrupt and essential product niches that don't attract intense competition
An average tenure of over 30 years for its CEO, CFO, and president
Aided by these advantages, UFP Technologies has not only delivered strong price appreciation, but is also well-positioned to continue succeeding in the future. Best yet for investors, the company's largest product line -- surgical drapes -- is poised to continue growing rapidly thanks to a manufacturing supply agreement with Intuitive Surgical.
2. Ties to Intuitive Surgical
In 2024, UFP signed a new four-year, $500 million agreement with Intuitive Surgical to supply the leader in robotic-assisted surgeries with single-use, sterile drapes that protect the robots during operations. This agreement ties the company to an industry that analysts believe will grow by at least double-digits for years to come.
This surgical drapes product line currently accounts for roughly 27% of the company's total revenue and fits in perfectly with UFP's focus on recurring, single-use, single-patient product sales.
With Intuitive Surgical recently reporting earnings that saw overall sales from robot installations grow by 25% in the fourth quarter, UFP's most significant product line should benefit and keep pushing the stock's top line higher.
3. Rising margins create a flywheel effect
While UFP's 13% annualized sales growth rate over the last decade is impressive enough, the company has grown its net income by 26% each year over the same time frame. Much of the reason for this success has been UFP's focus on selecting higher-margin products to manufacture with its customers.
Since its customers typically generate product ideas and bring them to the company for a production feasibility check, UFP ultimately decides whether to proceed with manufacturing. This business model essentially means that the company gets to hand-select which ideas to pursue -- typically higher-margin areas. This has led to the company's vastly improved profitability.
UFPT Operating Margin and Profit Margin (TTM) data by YCharts
Powered by this ballooning profitability, UFP has begun to explore the mergers and acquisitions (M&A) market voraciously, adding four companies in the summer of 2024 alone. Targeting businesses that will be accretive to its bottom line within the first year of their purchase (and complement or enhance its existing product lines), UFP has created a bit of a flywheel effect over recent years.
Higher margins have enabled further M&A over the last five years, and these acquisitions have generated higher profits over the previous two years, creating a flywheel effect that could continue for many years to come. While the company's 2024 acquisitions have a lot of potential, investors will want to watch UFP's earnings reports closely this year to make sure the newly integrated business lines live up to management's M&A goals.
4. Premium growth, now at a better value
Following the company's 27% drop over the last few months, UFP now trades at 29 times forward earnings. This valuation compares favorably to the S&P 500's average forward price-to-earnings ratio of 24.
This comparison holds especially true when you consider that UFP has grown its net income by 24% annually over the last decade compared to the S&P 500's average of 7%.
With tailwinds from the robotic-assisted surgery industry, a widening moat, and the potential for developing an M&A flywheel, UFP Technologies will be a stock I add to on the dip, even though its price has already doubled since I first purchased it.
Should you invest $1,000 in Ufp Technologies right now?
Before you buy stock in Ufp Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ufp Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $735,852!*
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*Stock Advisor returns as of January 27, 2025
Josh Kohn-Lindquist has positions in Ufp Technologies. The Motley Fool has positions in and recommends Intuitive Surgical. The Motley Fool recommends Ufp Technologies. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Meet the Little-Known Growth Stock I'm Buying Hand Over Fist in 2025 After a Recent Dip in Price

In trading on Thursday, shares of UFP Technologies Inc. (Symbol: UFPT) crossed below their 200 day moving average of $280.34, changing hands as low as $264.62 per share. UFP Technologies Inc. shares are currently trading off about 9% on the day. The chart below shows the one year performance of UFPT shares, versus its 200 day moving average:
Looking at the chart above, UFPT's low point in its 52 week range is $152.4301 per share, with $366.4094 as the 52 week high point — that compares with a last trade of $269.04.
Click here to find out which 9 other stocks recently crossed below their 200 day moving average »
Also see:
Larry Robbins Stock Picks
YGMZ shares outstanding history
Institutional Holders of SGLC
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

UFPT Makes Notable Cross Below Critical Moving Average

UFP Technologies (NASDAQ: UFPT) is a "designer and custom manufacturer of comprehensive solutions for medical devices, sterile packaging, and other highly engineered custom products." In layman's terms, UFP Technologies works with medical device manufacturers to develop a wide array of single-use, single-patient devices and components used in the medical technology (medtech) industry.
Serving the booming $500 billion medical device market, the company has delivered total returns in excess of 10,200% since 2000, making it a 103-bagger over that time.
Thanks to this history of success, I took a flyer on UFP and opened a starter position in early 2023 when the company's price-to-earnings (P/E) ratio was only 22 (despite reporting sales growth of 91% in Q3 of 2022).
Since then, UFP's stock has more than doubled -- even after recently dipping 19% from its all-time highs set in September. Despite this sudden spike in share price, I believe there are plenty of reasons for UFP to continue moving higher -- especially over the long term.
Here's why I am planning to make new additions to this winning investment, and why I intend to hold my shares for a long time to come.
How has UFP outpaced the market so far?
In the medtech industry for over 60 years, UFP currently counts 26 of the world's largest 30 medical device manufacturers as customers. These companies bring their ideas to UFP, where they collaboratively design and customize each idea to fit the specific solution needed.
The beauty of this model is that the manufacturers' ideas are self-funded and brought to UFP to check for feasibility and potential production using the company's patents and its (sometimes exclusive) access to certain materials. This model ultimately lets UFP handpick the product ideas that it green-lights, enabling it to focus on higher-margin ideas that are typically single-use, single-patient applications.
To give an example of what this looks like, consider UFP's current four-year, $500 million agreement as a preferred partner with Intuitive Surgical. Working in collaboration with the robotic-assisted surgery (RAS) leader, UFP developed "drapes" for the company's robots to "wear," separating the robot from the instruments used in during surgery while allowing for necessary flexibility.
Now UFP's largest product category, these drapes equal nearly one-third of the company's sales and are positioned to grow stronger, as evidenced by Intuitive Surgical's 13% sales growth rate over the last decade.
Thanks to long-standing agreements like these with its customers -- and handpicking promising products that it deems worthy of pursuing -- UFP has seen its margin profile improve dramatically over the last few years.
UFPT Operating and Profit Margin (TTM) data by YCharts
Powered by these improving margins, the company's free cash flow (FCF) and net income have grown by 17-fold and 7-fold, respectively, since 2014. This profitability and FCF generation give UFP ample funding to pour into its growth efforts, which primarily come through tuck-in mergers and acquisitions (M&A).
Why UFP looks like it could keep beating the market
Not only does UFP's improving profitability give it extra funding for M&A, but early results show that the company is doing an excellent job of integrating acquisitions. With its return on invested capital (ROIC) rising from 8% during the pandemic to 15% today, it is fair to say that the eight acquisitions the company made in the meantime have begun paying immediate dividends.
Focusing on strategic acquisitions that are accretive within the first year, the company aims to add companies that bring new capabilities, geographies, market segments, materials access, or a combination of the four.
One example of UFP leveraging its know-how in the medtech space was its recent acquisition of AJR Enterprises, a manufacturer of patient transfer devices. Since AJR's only customer was Stryker, it was purchased at a deep discount to standard medtech valuations, as private equity companies can't accept the risk of only serving one customer.
However, since Stryker is already a customer of UFP's for patient bedding, this risk doesn't factor in as much for them -- and, if anything, only reinforces the duo's ongoing relationship.
Meanwhile, UFP's 2024 acquisition of Marble Medical gave it access to its first-ever distributorship with 3M, allowing for new stick-to-skin and robotic drape applications. By gaining access to certain materials like this, UFP adds to its ever-widening moat.
With potential competitors facing barriers to entry thanks to UFP's access to exclusive materials, its long list of quality certifications, an extensive patent portfolio, and over 60 years of customer relationships in place, UFP will be hard to disrupt anytime soon.
Over the next three to five years, management expects sales to grow between 12% and 18% -- a potential step up from the 13% annualized growth it saw over the last decade. These expectations, paired with the medtech industry's projected growth of 6% annually through 2032, make me feel comfortable to add to UFP at a lofty 40 times forward earnings.
Ultimately, UFP's ability to expand its margins while reinforcing its moat through tuck-in acquisitions makes it the exact kind of winning investment that I believe will keep on winning. And I don't want to miss an excellent investment waiting for a "perfect" price.
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Josh Kohn-Lindquist has positions in Ufp Technologies. The Motley Fool has positions in and recommends Intuitive Surgical. The Motley Fool recommends 3M. The Motley Fool has a disclosure policy.
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1 Unstoppable Multibagger Up 10,200% Since 2000 to Buy and Hold Forever After a Recent Dip

In trading on Tuesday, shares of UFP Technologies Inc. (Symbol: UFPT) crossed above their 200 day moving average of $152.46, changing hands as high as $155.08 per share. UFP Technologies Inc. shares are currently trading up about 7.1% on the day. The chart below shows the one year performance of UFPT shares, versus its 200 day moving average:
Looking at the chart above, UFPT's low point in its 52 week range is $103.6409 per share, with $205.0825 as the 52 week high point — that compares with a last trade of $152.64.
Click here to find out which 9 other stocks recently crossed above their 200 day moving average »
Funds Holding WEA
FDNI Dividend History
ALSK Insider Buying
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

UFPT Crosses Above Key Moving Average Level

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the SPDR S&P 600 Small Cap Growth ETF (Symbol: SLYG), we found that the implied analyst target price for the ETF based upon its underlying holdings is $90.98 per unit.
With SLYG trading at a recent price near $72.45 per unit, that means that analysts see 25.57% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of SLYG's underlying holdings with notable upside to their analyst target prices are Ingevity Corp (Symbol: NGVT), Collegium Pharmaceutical Inc (Symbol: COLL), and UFP Technologies Inc. (Symbol: UFPT). Although NGVT has traded at a recent price of $40.96/share, the average analyst target is 65.20% higher at $67.67/share. Similarly, COLL has 49.25% upside from the recent share price of $22.78 if the average analyst target price of $34.00/share is reached, and analysts on average are expecting UFPT to reach a target price of $222.00/share, which is 44.57% above the recent price of $153.56. Below is a twelve month price history chart comparing the stock performance of NGVT, COLL, and UFPT:
Below is a summary table of the current analyst target prices discussed above:
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
Also see:
Top Stocks Held By Larry Robbins
COE Average Annual Return
Top Ten Hedge Funds Holding CNDF
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	28.96 23.75
Price/Sales	3.38 3.01
P/B	4.92 2.20
P/FCF	31.79 18.30

Indicator	TTM Median
ROE	18.48 25.41
ROA	11.25 6.00
ROI	13.48 9.66
Net Worth	1.71 0.20
Quick Ratio	1.41 1.71
Current Ratio	2.56 2.83

Indicator	TTM Median
Net Profit Margin	11.71 10.25
Operating Margin	16.07 14.24
Gross Margin	29.17 68.59
Return on tangible equity	94.40 53.53

Indicator	TTM Median
EPS	2.47 0.37
EPS Forecast	2.05 0.37
Revenue	144.00M 16.00M
Gross Profit	42.00M —
EBITDA	27.00M —

UFP Technologies, Inc.

TTM metrics for the latest quarter under IFRS and their historical dynamics

Valuation

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Efficiency

Other ratios

Revenue