Why Vontier (VNT) Could Be an Overlooked Value Stock

First Pacific Advisors recently unveiled its Q2 2026 investor letter, showcasing the impressive performance of the FPA Queens Road Small Cap Value Fund. The fund's growth accelerated relative to large-cap stocks, particularly in the small-cap technology sector, which surged nearly 100% in the first half of 2026. Small-cap earnings growth also outpaced that of large-cap companies.

The fund's technology holdings contributed 14.87 percentage points to the fund's 16.62% return, compared to the Russell 2000 Value Index's 12.73% return on a fully invested basis. The fund trimmed appreciated technology holdings amid the AI-driven rally while maintaining a bottom-up approach and avoiding beaten-down SaaS stocks.

Vontier (NYSE:VNT), a small-cap technology company, was highlighted in the fund's investor letter, with its shares trading between $27.25 and $48.20 over the last 52 weeks. The fund stated that Vontier's shares were attractively priced at roughly 9x earnings. Despite being held by a few hedge funds, the fund believes Vontier's potential sales to the convenience store end market and its position within the AI sector make it an overlooked value stock.