Conestoga Capital Advisors, an asset management company, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. For the second consecutive year, U.S. equity indices ended the year with double-digit returns after generating modest returns in the fourth quarter of 2024. Conestoga’s investment plans were hindered by the enthusiasm for everything artificial intelligence (AI) related, which the firm believes led to a more speculative investing climate. The Conestoga Small Cap Composite surged 1.67% (net) in the fourth quarter compared to the Russell 2000 Growth Index’s 1.70% return. The Conestoga SMid Cap Composite returned -0.68% (net) trailing the Russell 2500 Growth Index’s 2.43% return. The Conestoga Micro Cap Composite advanced 9.91% (net) vs the Russell Microcap Growth Index’s return of 11.55%. Finally, the Conestoga Mid Cap Composite returned -4.63% (net) underperforming the Russell Midcap Growth Index’s 8.14% return. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2024.
In its fourth quarter 2024 investor letter, Conestoga Capital Advisors emphasized stocks such as NV5 Global, Inc. (NASDAQ:NVEE). NV5 Global, Inc. (NASDAQ:NVEE) offers technology, conformity assessment, consulting solutions, and software applications to public and private sector clients in the infrastructure, utility services, construction, real estate, environmental, and geospatial markets. The one-month return NV5 Global, Inc. (NASDAQ:NVEE) was 0.17%, and its shares lost 33.26% of their value over the last 52 weeks. On February 11, 2025, NV5 Global, Inc. (NASDAQ:NVEE) stock closed at $18.12 per share, with a market capitalization of $1.179 billion.
Conestoga Capital Advisors stated the following regarding NV5 Global, Inc. (NASDAQ:NVEE) in its Q4 2024 investor letter:
“NV5 Global, Inc. (NASDAQ:NVEE) is a leading provider of professional engineering and consulting services. The company reported mixed results during the quarter, with earnings ahead of consensus, adjusted EBITDA below consensus, and revenue in-line with consensus. However, management lowered full-year revenue guidance below prior expectations. Although results were slightly disappointing, the company reported a record backlog heading into the fourth quarter and a robust M&A pipeline, which we believe bodes well for fiscal 2025 results.”
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NV5 Global, Inc. (NASDAQ:NVEE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held NV5 Global, Inc. (NASDAQ:NVEE) at the end of the third quarter which was 14 in the previous quarter. NV5 Global, Inc. (NASDAQ:NVEE) reported a net income of $17.1 million in the third quarter of 2024, compared to $13.1 million in Q3 2023. While we acknowledge the potential of NV5 Global, Inc. (NASDAQ:NVEE) 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 NV5 Global, Inc. (NASDAQ:NVEE) and shared Polen U.S. Small Company Growth Strategy’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.