Is PAR Technology Corporation (PAR) Poised for 20% Organic Growth Through Cross-Selling?

Choice Equities Capital Management, a hedge fund manager, recently released its third-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund lost -1.8% on a net basis bringing year-to-date gain to +5.5% compared to the Russell 2000’s +9.3% gain for the quarter and +11.2% gain for YTD. The S&P 500 generated a quarterly gain of +5.9% taking year-to-date gains to +22.1%. Since its inception in 2017, the fund has generated annualized gains of +15.0% versus +7.8% and +14.5% returns for the indexes. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Choice Equities Capital Management highlighted stocks like PAR Technology Corporation (NYSE:PAR) in the third quarter 2024 investor letter. PAR Technology Corporation (NYSE:PAR) offers omnichannel cloud-based hardware and software solutions to the restaurant and retail industries. The one-month return of PAR Technology Corporation (NYSE:PAR) was 7.48%, and its shares gained 84.75% of their value over the last 52 weeks. On November 4, 2024, PAR Technology Corporation (NYSE:PAR) stock closed at $60.93 per share with a market capitalization of $2.211 billion.

Choice Equities Capital Management stated the following regarding PAR Technology Corporation (NYSE:PAR) in its Q3 2024 investor letter:

“PAR Technology Corporation (NYSE:PAR) – PAR Technology Corporation continues to win new logos in the enterprise restaurant arena for its unified digital commerce offering and is now successfully expanding into the convenience store channel, under the recently acquired Stuzzo banner. Building on continued successes in cross-selling products to existing customers with various unmet needs, the company looks set for 20% organic growth for the foreseeable future. As the company has managed to hold operating expenses nearly flat for each of the last six quarters, attractive EBITDA margins into the mid 20 percent range and beyond are likely to soon emerge.”

An engineer working in a tech lab, surrounded by tools and components.

PAR Technology Corporation (NYSE:PAR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held PAR Technology Corporation (NYSE:PAR) at the end of the second quarter which was 28 in the previous quarter. In the June quarter, PAR Technology Corporation (NYSE:PAR) reported $78.2 million in revenues, representing 12% year-over-year growth. While we acknowledge the potential of PAR Technology Corporation (NYSE:PAR) 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 PAR Technology Corporation (NYSE:PAR) and shared Baron Opportunity Fund’s views on the company. 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.