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 Willdan Group, Inc. (NASDAQ:WLDN), in the third quarter 2024 investor letter. Willdan Group, Inc. (NASDAQ:WLDN) offers professional, technical, and consulting services that operates in Energy, and Engineering and Consulting segments. The one-month return of Willdan Group, Inc. (NASDAQ:WLDN) was 13.70%, and its shares gained 156.13% of their value over the last 52 weeks. On October 22, 2024, Willdan Group, Inc. (NASDAQ:WLDN) stock closed at $45.31 per share with a market capitalization of $634.086 million.
Conestoga Capital Advisors stated the following regarding Willdan Group, Inc. (NASDAQ:WLDN) in its Q3 2024 investor letter:
“Willdan Group, Inc. (NASDAQ:WLDN) provides technical and consulting services to utilities, private industry, and public agencies. WLDN’s second quarter performance was well above expectations, with strength coming from all areas of the business, which resulted in improved profitability. Consolidated contract revenue grew, and adjusted EBITDA increased. Management highlighted electric power demand strength fueled by growth of data centers from artificial intelligence. With recent momentum expected to continue, management raised their fiscal 2024 guidance for all financial targets.”
An engineer standing proudly in front of a high-rise building, a symbol of the company’s excellence in construction.
Willdan Group, Inc. (NASDAQ:WLDN) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 10 hedge fund portfolios held Willdan Group, Inc. (NASDAQ:WLDN) at the end of the second quarter which was 7 in the previous quarter. While we acknowledge the potential of Willdan Group, Inc. (NASDAQ:WLDN) 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 Willdan Group, Inc. (NASDAQ:WLDN) and shared Conestoga Capital Advisors’ views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.