What Makes Mama’s Creations (MAMA) a Good Investment Opportunity?
Conestoga Capital Advisors, an asset management company, released its third-quarter 2024 investor letter. A copy of the letter can be downloaded here. At its September meeting, the Federal Reserve lowered the Federal Funds rate by 50 basis points due to weaker employment growth and moderate inflation. Equity markets welcomed the news, raising optimism for a soft landing in the U.S. economy. On September 26th, the S&P 500 Index achieved a record high, the Russell 2000 Index also moved higher over the quarter but remains roughly 10% below its all-time high. The Conestoga Small Cap Composite surged 10.09% (net) in the third quarter outperforming the Russell 2000 Growth Index’s 8.41% return. The Conestoga SMid Cap Composite returned 12.94% (net) versus the Russell 2500 Growth Index’s 6.99% return. The Conestoga Micro Cap Composite advanced 7.60% (net) but trailed the Russell Microcap Growth Index’s return of 8.57%. Finally, the Conestoga Mid Cap Composite returned 8.36% (net) outperforming the Russell Midcap Growth Index’s 6.54%. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2024.
Conestoga Capital Advisors highlighted stocks like Mama’s Creations, Inc. (NASDAQ:MAMA), in the third quarter 2024 investor letter. Mama’s Creations, Inc. (NASDAQ:MAMA) manufactures and markets fresh deli-prepared foods. The one-month return of Mama’s Creations, Inc. (NASDAQ:MAMA) was 4.45%, and its shares gained 101.56% of their value over the last 52 weeks. On October 21, 2024, Mama’s Creations, Inc. (NASDAQ:MAMA) stock closed at $7.71 per share with a market capitalization of $292.729 million.
Conestoga Capital Advisors stated the following regarding Mama’s Creations, Inc. (NASDAQ:MAMA) in its Q3 2024 investor letter:
"Mama’s Creations, Inc. (NASDAQ:MAMA) is a leading marketer and manufacturer of fresh deli prepared foods, found in over 8,400 grocery, club and convenience stores nationally. CEO Adam Michaels joined MAMA in mid-2022 and has transformed the company into a more sophisticated operator with a broader platform of offerings. Adam has added management talent and Board depth, and he has an ambitious goal for raising revenues. The $25 billion prepared deli foods category is one of the fastest growing categories in grocery and is increasingly being prioritized to drive traffic. The category is growing 8-10% per year and MAMA has been taking share, pushing organic growth to double-digits. Profit margins have also increased, which has led to better cash generation and the ability to fund acquisitions to further grow the platform."
Mama’s Creations, Inc. (NASDAQ:MAMA) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 9 hedge fund portfolios held Mama’s Creations, Inc. (NASDAQ:MAMA) at the end of the second quarter which was 15 in the previous quarter. Mama’s Creations, Inc. (NASDAQ:MAMA) reported $28.4 million in revenues in the second quarter of fiscal 2025, up 14% from prior year’s quarter. While we acknowledge the potential of Mama’s Creations, Inc. (NASDAQ:MAMA) 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 Mama’s Creations, Inc. (NASDAQ:MAMA) and shared Wasatch Micro-Cap Value Strategy's views on the company in the previous quarter. 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.