Multiple Reasons for the Outperformance of U.S. Physical Therapy (USPH)

Conestoga Capital Advisors, an asset management company, released its “Micro Cap Strategy” second-quarter 2023 investor letter. A copy of the same can be downloaded here. The Micro Cap Composite declined -1.53% net of fees in the second quarter, compared to the Russell Microcap Growth Index’s 6.35% return. Despite eight of the eleven sectors adding value to relative performance, negative stock selection effects in the Industrials, Health Care, and Technology sectors proved too much to overcome. The portfolio was also hindered by stylistic headwinds. Positive sector allocation effects contributed modestly to performance. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Conestoga Micro Cap Strategy highlighted stocks like U.S. Physical Therapy, Inc. (NYSE:USPH) in the second quarter 2023 investor letter. Based in Houston, Texas, U.S. Physical Therapy, Inc. (NYSE:USPH) operates outpatient physical therapy clinics. On August 9, 2023, U.S. Physical Therapy, Inc. (NYSE:USPH) stock closed at $109.00 per share. One-month return of U.S. Physical Therapy, Inc. (NYSE:USPH) was -8.89%, and its shares gained 20.62% of their value over the last 52 weeks. U.S. Physical Therapy, Inc. (NYSE:USPH) has a market capitalization of $1.605 billion.

Conestoga Micro Cap Strategy made the following comment about U.S. Physical Therapy, Inc. (NYSE:USPH) in its second quarter 2023 investor letter:

“U.S. Physical Therapy, Inc. (NYSE:USPH) was the other big contributor in the quarter, beating revenue and earnings estimates for Q1 and delivering a record number of patient per day visits for any Q1 in the company’s history.

USPH owns and operates 615 outpatient physical therapy clinics in 40 different states and has an industrial injury prevention segment. The company beat the revenue and earnings estimates for Q1 and delivered a record number of patient per day visits (29.8) for any Q1 in the company’s history. This superior execution as well as the defensive nature of the business, helped the stock outperform in the quarter.”

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U.S. Physical Therapy, Inc. (NYSE:USPH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 8 hedge fund portfolios held U.S. Physical Therapy, Inc. (NYSE:USPH) at the end of the first quarter which was 10 in the previous quarter.

We discussed U.S. Physical Therapy, Inc. (NYSE:USPH) in another article and shared SouthernSun Small Cap Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q2 2023 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.