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 Neogen Corporation (NASDAQ:NEOG). Neogen Corporation (NASDAQ:NEOG) engages in the development of various products and services dedicated to food and animal safety. The one-month return Neogen Corporation (NASDAQ:NEOG) was -13.17%, and its shares lost 36.62% of their value over the last 52 weeks. On February 10, 2025, Neogen Corporation (NASDAQ:NEOG) stock closed at $10.42 per share, with a market capitalization of $2.261 billion.
Conestoga Capital Advisors stated the following regarding Neogen Corporation (NASDAQ:NEOG) in its Q4 2024 investor letter:
“Neogen Corporation (NASDAQ:NEOG) reported weak 1Q 2025 results, reflecting both ongoing 3M Food Safety integration hurdles and softness across key end markets. Core revenue declined 1% amid operational challenges, though management highlighted progress in resolving shipping constraints and normalizing production. Near-term margins remain constrained by integration investments, but market share recapture efforts are gaining traction. Looking ahead, we believe an expanded product portfolio and increasing food safety regulatory tailwinds position NEOG for renewed growth and margin recovery as end markets stabilize.”
A research laboratory showing advanced diagnostic equipment used to protect public health.
Neogen Corporation (NASDAQ:NEOG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Neogen Corporation (NASDAQ:NEOG) at the end of the third quarter which was 16 in the previous quarter. Neogen Corporation (NASDAQ:NEOG) generated $231 million in revenues in the fiscal second quarter of 2025. While we acknowledge the potential of Neogen Corporation (NASDAQ:NEOG) 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 Neogen Corporation (NASDAQ:NEOG) and shared the list of best pet stocks to invest in according to analysts. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.