Construction Partners (ROAD) Fell Amid Profit Taking and General Industry Weakness

1 month ago 11

Soumya Eswaran

Tue, Apr 29, 2025, 6:30 AM 3 min read

Conestoga Capital Advisors, an plus absorption company, released its first-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. Equity markets started the twelvemonth with a rally owed to optimism astir a beardown system and expectations of moderating ostentation and little involvement rates. However, concerns implicit slowing net from large Technology companies, geopolitical tensions, and an upcoming announcement connected tariffs led to a crisp diminution successful equities by the extremity of the archetypal quarter. Investors sought safety, driving U.S. Treasury yields down. The Conestoga Small Cap Composite returned -11.35% (net) successful the archetypal 4th 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 instrumentality 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 cheque the apical 5 holdings of the money for a amended knowing of their champion picks for 2025.

In its first-quarter 2025 capitalist letter, Conestoga Capital Advisors highlighted stocks specified arsenic Construction Partners, Inc. (NASDAQ:ROAD). Construction Partners, Inc. (NASDAQ:ROAD) is simply a civilian infrastructure institution that constructs and maintains roadways. The one-month instrumentality of Construction Partners, Inc. (NASDAQ:ROAD) was 12.15%, and its shares gained 53.09% of their worth implicit the past 52 weeks. On April 28, 2025, Construction Partners, Inc. (NASDAQ:ROAD) banal closed astatine $80.60 per stock with a marketplace capitalization of $4.51 billion.

Conestoga Capital Advisors stated the pursuing regarding Construction Partners, Inc. (NASDAQ:ROAD) successful its Q1 2025 capitalist letter:

"After being 1 of the portfolio’s starring contributor successful six of the past 7 quarters, shares successful Construction Partners, Inc. (NASDAQ:ROAD) pulled backmost during the archetypal 4th of 2025. This was apt owed to immoderate profit- taking and wide weakness successful infrastructure stocks aft beardown gains successful 2024. ROAD was besides the taxable of a abbreviated study successful precocious January, which we recovered to beryllium lacking successful presumption of caller information. ROAD reported beardown fiscal archetypal 4th results, with the 4th good up of estimates and backlog again hitting a record. Management raised guidance for the year, a affirmative motion that the beardown request it is witnessing should continue."