Is Verisk Analytics (VRSK) a Recession-Resistant Stock?
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 Verisk Analytics, Inc. (NASDAQ:VRSK). Verisk Analytics, Inc. (NASDAQ:VRSK) offers data analytics solutions to the insurance markets. The one-month return of Verisk Analytics, Inc. (NASDAQ:VRSK) was 3.34%, and its shares gained 24.09% of their value over the last 52 weeks. On May 1, 2025, Verisk Analytics, Inc. (NASDAQ:VRSK) stock closed at $294.51 per share with a market capitalization of $41.215 billion.
Conestoga Capital Advisors stated the following regarding Verisk Analytics, Inc. (NASDAQ:VRSK) in its Q1 2025 investor letter:
"Verisk Analytics, Inc.'s (NASDAQ:VRSK) 4Q results were generally in line with the market's expectations. The company's organic revenue growth was 8.6% and adjusted EBITDA increased 9.8%. The resiliency of its business model is evidenced by its 2025 guidance. The company expects organic revenue growth of 7%, and EBITDA margin expansion of 70 basis points. Similar to ROL and WCN, VRSK's, recession-resistant sustainable growth and strong free cash flow business model is attractive to investors during highly uncertain market periods."
An engineer using the latest predictive analytics software to formulate solutions.
Verisk Analytics, Inc. (NASDAQ:VRSK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held Verisk Analytics, Inc. (NASDAQ:VRSK) at the end of the fourth quarter which was 42 in the previous quarter. In the fourth quarter, Verisk Analytics, Inc. (NASDAQ:VRSK) generated $736 million in revenues, representing an increase of 8.6% from Q4 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 covered Verisk Analytics, Inc. (NASDAQ:VRSK) and shared TimesSquare Capital Management U.S. Focus Growth Strategy's views on the company. In addition, please check out our hedge fund investor letters Q1 2025 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.
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