Conestoga Capital Advisors, an asset management firm, released its Q3 2025 investor letter. A copy of the letter can be downloaded here. Equity markets continued the momentum started in early April and reached new all-time highs in the third quarter. The Mid Cap Composite returned -3.2% net of fees in the third quarter, compared to a 2.8% gain for the Russell Midcap Growth Index. The strategy’s focus on profitable, high-quality companies struggled to maintain pace in the quarter amid a dominance of risk. Check out the fund’s top five holdings to better understand your best picks for 2025.
In its Q3 2025 investor letter, Conestoga Capital Advisors highlighted stocks like Verisk Analytics, Inc. (NASDAQ:VRSK). Verisk Analytics, Inc. (NASDAQ:VRSK) provides data analytics and technology solutions for the insurance industry. Verisk Analytics, Inc. (NASDAQ:VRSK)’s monthly performance was -2.17% and its shares lost 11.42% of its value in the last 52 weeks. On October 21, 2025, Verisk Analytics, Inc. (NASDAQ:VRSK) stock closed at $237.03 per share, with a market capitalization of $33.117 billion.
Conestoga Capital Advisors stated the following regarding Verisk Analytics, Inc. (NASDAQ:VRSK) in its Q3 2025 investor letter:
“Verisk Analytics, Inc. (NASDAQ:VRSK) provides data analytics and decision support solutions primarily to the insurance industry. VRSK stock pulled back significantly in the third quarter after a very strong first half of 2025. The company posted a very strong second quarter with organic revenue growth of 7.9%. Verisk’s second quarter results exceeded Street expectations in terms of revenue, adjusted EBITDA, adjusted EBITDA margin and adjusted EPS. In addition to the earnings release, the company announced the acquisition of AccuLynx, a SAAS-based software company, for $2.5 billion. Investors stopped at the 15x earnings multiple the company paid for this asset. The stock’s decline also reflects the moderation in organic growth expectations for the second half of the year.”
Verisk Analytics, Inc. (NASDAQ:VRSK) isn’t on our list of the 30 most popular stocks among hedge funds. According to our database, 49 hedge fund portfolios owned Verisk Analytics, Inc. (NASDAQ:VRSK) at the end of the second quarter, compared to 45 in the previous quarter. In Q2 2025, Verisk Analytics, Inc. (NASDAQ:VRSK) generated $773 million in revenue, representing a 7.8% increase over Q2 2024. While we recognize the potential for Verisk Analytics, Inc. (NASDAQ:VRSK) as an investment, we believe certain AI stocks offer greater upside potential and They carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.