Verisk Analytics (VRSK) Benefited from Positive Industry Momentum
Conestoga Capital Advisors, an asset management company, released its “Mid-Cap Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. The second quarter of 2024 may be regarded as a time of moderation. Economic indicators largely reflected slowing growth and easing inflation. The moderation theme also drives equity markets. Large-cap stocks, as measured by the S&P 500, rose 3.9% in the second quarter, however, small-cap stocks lagged again, with the Russell 2000 Index declining -3.3% and the Russell 2000 Growth Index declining -2.9%. The Mid Cap Strategy declined -4.22% net-of-fees in the quarter compared to a -3.21% return for the Russell Mid Cap Growth Index. Sector allocation effects were slightly positive, while stock selection effects detracted from relative returns. Higher-quality companies benefited from stylistic factors, which helped to boost relative returns. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Conestoga Capital Advisors highlighted stocks like Verisk Analytics, Inc. (NASDAQ:VRSK) in the Q2 2024 investor letter. Verisk Analytics, Inc. (NASDAQ:VRSK) offers data analytics solutions to the insurance markets. The one-month return of Verisk Analytics, Inc. (NASDAQ:VRSK) was -4.30%, and its shares gained 14.74% of their value over the last 52 weeks. On August 16, 2024, Verisk Analytics, Inc. (NASDAQ:VRSK) stock closed at $266.63 per share with a market capitalization of $37.975 billion.
Conestoga Capital Advisors stated the following regarding Verisk Analytics, Inc. (NASDAQ:VRSK) in its Q2 2024 investor letter:
"Verisk Analytics, Inc. (NASDAQ:VRSK): In early May, VRSK reported a strong start to the year with its first quarter results for 2024. The company's success is largely attributed to the robust insurance end market it serves. Currently, the industry's positive momentum is encouraging insurers to increase their investments in business operations and marketing efforts. Although VRSK has maintained its full-year guidance, the impressive first quarter results have bolstered investor confidence in the company's ability to meet its goals for 2024."
An engineer using the latest predictive analytics software to formulate solutions.
Verisk Analytics, Inc. (NASDAQ:VRSK) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held Verisk Analytics, Inc. (NASDAQ:VRSK) at the end of the second quarter which was 47 in the previous quarter. The second quarter revenue of Verisk Analytics, Inc. (NASDAQ:VRSK) was $717 million, up 6.2% from Q2 2023. While we acknowledge the potential of Verisk Analytics, Inc. (NASDAQ:VRSK) 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 Verisk Analytics, Inc. (NASDAQ:VRSK) and shared Baron FinTech Fund's views on the company. Verisk Analytics, Inc. (NASDAQ:VRSK) was listed among the Conestoga Capital Advisors' top contributors in its Q3 2023 investor letter. In addition, please check out our hedge fund investor letters Q2 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.