Conestoga Capital Advisors , an asset management company, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here . Equity markets started the year with a rally due to optimism about a strong economy and expectations of moderating inflation and lower interest rates. However, concerns over slowing earnings from major Technology companies, geopolitical tensions, and an upcoming announcement on tariffs led to a sharp decline in equities by the end of the first quarter. Investors sought safety, driving U.S. Treasury yields down. The Conestoga Small Cap Composite returned -11.35% (net) in the first quarter compared to the Russell 2000 Growth Index’s -11.12% return. The Conestoga SMid Cap Composite returned -5.73% compared to the Russell 2500 Growth Index’s -10.80% return. The Conestoga Micro-Cap Composite returned -8.24% vs the Russell Microcap Growth Index’s return of -17.75%. Finally, the Conestoga Mid Cap Composite returned 0.96% (net), compared to the Russell Midcap Growth Index’s -7.12% return. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2025.
In its first-quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as Willdan Group, Inc. (NASDAQ: WLDN ). Willdan Group, Inc. (NASDAQ:WLDN) offers professional, technical, and consulting services that operates in Energy, and Engineering and Consulting segments. The one-month return of Willdan Group, Inc. (NASDAQ:WLDN) was -3.06%, and its shares gained 40.40% of their value over the last 52 weeks. On April 29, 2025, Willdan Group, Inc. (NASDAQ:WLDN) stock closed at $39.58 per share with a market capitalization of $573.799 million.
Conestoga Capital Advisors stated the following regarding Willdan Group, Inc. (NASDAQ:WLDN) in its Q1 2025 investor letter:
"Willdan Group, Inc. (NASDAQ:WLDN) provides professional technical and consulting services to utilities, private industry, and public agencies. WLDN reported Q4’24 results that exceeded expectations for revenue, earnings-per-share, and EBITDA. Guidance for 2025 was also above consensus views for all metrics. For 2024, both contract revenue and adjusted EBITDA were up year-over-year. Execution and performance were strong across all lines of business, leading to a record level of free cash flow. Recent acquisition announcements should also bolster growth opportunities over the next several years."
An engineer standing proudly in front of a high-rise building, a symbol of the company's excellence in construction.
Willdan Group, Inc. (NASDAQ:WLDN) is not on our list of 30 Most Popular Stocks Among Hedge Funds . As per our database, 19 hedge fund portfolios held Willdan Group, Inc. (NASDAQ:WLDN) at the end of the fourth quarter, compared to 13 in the third quarter. While we acknowledge the potential of Willdan Group, Inc. (NASDAQ:WLDN) 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 covered Willdan Group, Inc. (NASDAQ:WLDN) and shared Conestoga Capital Advisors' views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2025 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 .