Conestoga Capital Advisors, an asset management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter began with a historically poor start but gained momentum later as tariff fears subsided and market volatility dropped precipitously. Conestoga Small Cap Composite returned 4.76% in the quarter compared to 11.97% for the Russell 2000 Growth Index. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2025.
In its second quarter 2025 investor letter, Conestoga Capital Advisors highlighted 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 of Neogen Corporation (NASDAQ:NEOG) was 9.21%, and its shares lost 69.83% of their value over the last 52 weeks. On July 25, 2025, Neogen Corporation (NASDAQ:NEOG) stock closed at $5.22 per share, with a market capitalization of $1.133 billion.
Conestoga Capital Advisors stated the following regarding Neogen Corporation (NASDAQ:NEOG) in its second quarter 2025 investor letter:
“Neogen Corporation’s (NASDAQ:NEOG) FY3Q results continued a string of disappointing quarters. The company also lowered FY4Q guidance. Additionally, the company announced a search for a new CEO. The continued fundamental 3M food safety integration challenges, end market weakness, and management changes caused us to exit the stock during the quarter. The company still has the manufacturing transition of a major product, Petrifilm, to execute and the change in CEO may cause some significant organizational disruption.
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. According to our database, 15 hedge fund portfolios held Neogen Corporation (NASDAQ:NEOG) at the end of the first quarter compared to 15 in the previous quarter. While we acknowledge the potential of Neogen Corporation (NASDAQ:NEOG) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
