TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter the fund returned -1.59% (gross) and -1.83% (net), compared to a -2.92% return for the Russell 2000 Growth Index. The equity markets performed well in the second quarter, as long as one held only a handful of the biggest, fastest-growing U.S. stocks. Despite profitability turning positive this quarter following negative or neutral results in previous quarters, momentum remained the most important component in the worldwide market. In addition, please check the fund’s top five holdings to know its best picks in 2024.
TimesSquare Capital Management U.S. Small Cap Growth Strategy highlighted stocks like Exponent, Inc. (NASDAQ:EXPO), in the second quarter 2024 investor letter. Exponent, Inc. (NASDAQ:EXPO), with a market capitalization of $5.497 billion, is a science and engineering consulting company. The one-month return of Exponent, Inc. (NASDAQ:EXPO) was 4.08%, and its shares gained 20.86% of their value over the last 52 weeks. On September 17, 2024, Exponent, Inc. (NASDAQ:EXPO) stock closed at $108.35 per share with a market capitalization of $5.497 billion.
TimesSquare Capital Management U.S. Small Cap Growth Strategy stated the following regarding Exponent, Inc. (NASDAQ:EXPO) in its Q2 2024 investor letter:
“Many of our Industrial positions provide necessary business-to-business operational services, highly technical components, automation & efficiency improvements, or essential infrastructure services. Exponent, Inc. (NASDAQ:EXPO) is an engineering and scientific consulting firm. Its stock climbed 15% on the heels of profits and earnings that surpassed Street projections. Demand for failure analysis and dispute-related engagements was robust across industries including transportation, life sciences, and energy. On the other side, weakness in consumer electronics demand continued to represent an offset to top line growth.”
A chemical engineer studying a lab sample of a food product for safety regulations.
Exponent, Inc. (NASDAQ:EXPO) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held Exponent, Inc. (NASDAQ:EXPO) at the end of the second quarter which was 21 in the previous quarter. In Q2 2024, Exponent, Inc.’s (NASDAQ:EXPO) total revenues were roughly $140.5 million, which remained flat compared to Q2 2023. The company’s net income increased to $29.2 million, or $0.57 per diluted share in the second quarter, from $25.7 million, or $0.50 per diluted share, in Q2 2023. While we acknowledge the potential of Exponent, Inc. (NASDAQ:EXPO) 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 Exponent, Inc. (NASDAQ:EXPO) and shared Conestoga Capital Advisors’ views on the company. In addition, please check out our hedge fund investor letters Q2 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.
