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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.