Eplus Inc (PLUS) Surged on Solid Results

The London Company, an investment management company, released “The London Company Small Cap Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter, the fund appreciated 7.1% (7%, net) compared to a 9.3% increase in the Russell 2000 Index. The positive impact of sector allocation was mitigated by stock selection in the third quarter. For more information on the fund’s top picks in 2024, please check its top five holdings.

The London Company Small Cap Strategy highlighted stocks like EPlus inc. (NASDAQ:PLUS) in the third quarter 2024 investor letter. Headquartered in Herndon, Virginia, ePlus inc. (NASDAQ:PLUS) provides information technology (IT) solutions to optimize IT environment and supply chain processes for companies. The one-month return of EPlus inc. (NASDAQ:PLUS) was -5.83%, and its shares gained 50.95% of their value over the last 52 weeks. On November 12, 2024, EPlus inc. (NASDAQ:PLUS) stock closed at $95.22 per share with a market capitalization of $2.558 billion.

The London Company Small Cap Strategy stated the following regarding EPlus inc. (NASDAQ:PLUS) in its Q3 2024 investor letter:

“EPlus inc. (NASDAQ:PLUS) – PLUS reported solid quarterly results against tough comparisons and maintained guidance for the year. PLUS is delivering on the growth of its services s marked businesses, which is positive for margin and stability. PLUS has an under-levered balance sheet and attractive opportunities to deploy cash into accretive tuck-ins or share repurchases.”

A close-up of a technician’s hands assembling a hardware component of an IT solution.

EPlus inc. (NASDAQ:PLUS) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held EPlus inc. (NASDAQ:PLUS) at the end of the second quarter which was 14 in the previous quarter. Consolidated net sales of EPlus inc. (NASDAQ:PLUS) in the first fiscal quarter of 2025 totaled $544.5 million, down from $574.2 million in previous year’s first quarter primarily due to decreased product sales in the technology business. While we acknowledge the potential of EPlus inc. (NASDAQ:PLUS) 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.

The London Company Small Cap Strategy initiated a position in EPlus inc. (NASDAQ:PLUS) during Q4 2023. 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.