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 Procore Technologies, Inc. (NYSE:PCOR) in the third quarter 2024 investor letter. Based in Carpinteria, California, Procore Technologies, Inc. (NYSE:PCOR) provides a cloud-based construction management platform and related software products. The one-month return of Procore Technologies, Inc. (NYSE:PCOR) was 3.39%, and its shares gained 1.97% of their value over the last 52 weeks. On October 22, 2024, Procore Technologies, Inc. (NYSE:PCOR) stock closed at $62.60 per share with a market capitalization of $9.245 billion.
Conestoga Capital Advisors stated the following regarding Procore Technologies, Inc. (NYSE:PCOR) in its Q3 2024 investor letter:
“Procore Technologies, Inc. (NYSE:PCOR) is a market leader in cloud-based construction project management software sold to building owners, general contractors and subcontractors. Revenue guidance for the upcoming quarter missed and its customer growth decelerated. Shares have been under pressure over the last six months and despite the company lifting its full-year revenue outlook, investors seem more focused on short-term issues.”
A computer monitor displaying cloud-based construction management platform software.
Procore Technologies, Inc. (NYSE:PCOR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held Procore Technologies, Inc. (NYSE:PCOR) at the end of the second quarter which was 45 in the previous quarter. The second-quarter revenue of Procore Technologies, Inc. (NYSE:PCOR) was $284 million, which represents a 24% year over year increase. While we acknowledge the potential of Procore Technologies, Inc. (NYSE:PCOR) 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 Procore Technologies, Inc. (NYSE:PCOR) and shared Parnassus Growth Equity Fund’s 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.