Here’s Why Madison Small Cap Fund Bets on AAON (AAON)

In its fourth-quarter 2025 capitalist letter, Madison Small Cap Fund highlighted stocks similar AAON, Inc. (NASDAQ:AAON). AAON, Inc. (NASDAQ:AAON) designs and manufactures high-efficiency aerial conditioning and heating equipment. On March 12, 2026, AAON, Inc. (NASDAQ:AAON) banal closed astatine $87.06 per share. One-month instrumentality of AAON, Inc. (NASDAQ:AAON) was -13.43%, and its shares gained 6.50% implicit the past 12 months. AAON, Inc. (NASDAQ:AAON) has a marketplace capitalization of $8.35 billion.

Madison Small Cap Fund stated the pursuing regarding AAON, Inc. (NASDAQ:AAON) successful its 4th fourth 2025 capitalist letter:

"AAON, Inc. (NASDAQ:AAON) is simply a supplier of rooftop HVAC units for non-residential operation and clime power solutions for information centers. The institution is known for its high-quality customized and semi-custom solutions and is beardown successful the hospital, education, and information halfway extremity markets. The company’s bequest HVAC solutions are augmented by the 2021 acquisition of BASX, which is well-positioned successful information halfway cooling. We similar the timing of this investment, arsenic the company’s halfway concern has been somewhat challenged successful 2025 owed to an EPA-required refrigerant changeover that disrupted income and a indispensable but achy endeavor assets readying (ERP) rollout that delayed pb times. Nonetheless, we judge AAON has a beardown marque successful rooftop HVAC and has gained marketplace stock successful this abstraction implicit the past 10 years. We deliberation 2026 volition beryllium amended for bequest AAON. Additionally, the BASX information halfway cooling concern is accelerating rapidly, and we judge it volition standard to >$1B successful revenue, driving accelerated net growth. We estimation intrinsic worth astatine $114, implying that the banal is presently trading astatine astir a 23% discount."

AAON, Inc. (NASDAQ:AAON) is not connected our database of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 36 hedge money portfolios held AAON, Inc. (NASDAQ:AAON) astatine the extremity of the 4th quarter, up from 29 successful the erstwhile quarter. Q4 2025 results amusement AAON, Inc. (NASDAQ:AAON) generated $424.2 cardinal successful revenue, representing 42.5% maturation twelvemonth implicit year. While we admit the imaginable of AAON, Inc. (NASDAQ:AAON) 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.