Conestoga Capital Advisors, an asset management company, released its third-quarter 2024 investor letter. A copy of the letter can be downloaded here. At its September meeting, the Federal Reserve lowered the Federal Funds rate by 50 basis points due to weaker employment growth and moderate inflation. Equity markets welcomed the news, raising optimism for a soft landing in the U.S. economy. On September 26th, the S&P 500 Index achieved a record high, the Russell 2000 Index also moved higher over the quarter but remains roughly 10% below its all-time high. The Conestoga Small Cap Composite surged 10.09% (net) in the third quarter outperforming the Russell 2000 Growth Index’s 8.41% return. The Conestoga SMid Cap Composite returned 12.94% (net) versus the Russell 2500 Growth Index’s 6.99% return. The Conestoga Micro Cap Composite advanced 7.60% (net) but trailed the Russell Microcap Growth Index’s return of 8.57%. Finally, the Conestoga Mid Cap Composite returned 8.36% (net) outperforming the Russell Midcap Growth Index’s 6.54%. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2024.
Conestoga Capital Advisors highlighted stocks like Axon Enterprise, Inc. (NASDAQ:AXON), in the third quarter 2024 investor letter. Axon Enterprise, Inc. (NASDAQ:AXON) manufacturers conducted energy devices (CEDs) under the TASER brand. The one-month return of Axon Enterprise, Inc. (NASDAQ:AXON) was 14.77%, and its shares gained 111.79% of their value over the last 52 weeks. On October 21, 2024, Axon Enterprise, Inc. (NASDAQ:AXON) stock closed at $443.98 per share with a market capitalization of $34.19 billion.
Conestoga Capital Advisors stated the following regarding Axon Enterprise, Inc. (NASDAQ:AXON) in its Q3 2024 investor letter:
“Axon Enterprise, Inc. (NASDAQ:AXON), who is leveraging technology to transform public safety, is a leader for the second time this year. AXON continues to see robust demand for its product and services, from Tasers to body cameras to the software that powers many applications within public safety operations. In its most recently reported quarter, AXON grew revenue and EBTIDA, and order backlog surged 41%. In addition to strong revenue growth, AXON expanded EBITDA margins in the quarter.”
A technician in a white coat testing an in-car system on a modern military vehicle.
Axon Enterprise, Inc. (NASDAQ:AXON) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Axon Enterprise, Inc. (NASDAQ:AXON) at the end of the second quarter which was 35 in the previous quarter. While we acknowledge the potential of Axon Enterprise, Inc. (NASDAQ:AXON) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Axon Enterprise, Inc. (NASDAQ:AXON) and shared the list of most profitable industrial stocks to invest in. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.