Casella Waste Systems (CWST) Slipped Following the Results

Conestoga Capital Advisors, an asset management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets continued their momentum that began in early April, reaching new all-time highs in the third quarter. In the quarter, the Conestoga Small Cap Composite returned -1.4% net-of-fees, underperforming the Russell 2000 Growth Index’s impressive 12.2% gain. Most of the Index’s gains come from low-quality stock leadership, where unprofitable, high-beta names have considerably outperformed. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2025.

In its third-quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as Casella Waste Systems, Inc. (NASDAQ:CWST). Casella Waste Systems, Inc. (NASDAQ:CWST) is a vertically integrated solid waste services company. The one-month return of Casella Waste Systems, Inc. (NASDAQ:CWST) was -4.04%, and its shares lost 18.03% of their value over the last 52 weeks. On October 17, 2025, Casella Waste Systems, Inc. (NASDAQ:CWST) stock closed at $85.76 per share, with a market capitalization of $5.445 billion.

Conestoga Capital Advisors stated the following regarding Casella Waste Systems, Inc. (NASDAQ:CWST) in its third quarter 2025 investor letter:

“Casella Waste Systems, Inc. (NASDAQ:CWST) is one of the leading regional solid waste, recycling, and resource management companies in the northeastern U.S. The company underperformed after reporting disappointing profit margin during its second quarter report. The stock weakness reflects investor frustration with the company’s ability to improve margins at the assets it acquired in the mid-Atlantic region from GFL Environmental (GFL) two years ago. While we are equally frustrated, we believe management has addressed the issues and gains will come at the end of this year.”

Casella Waste Systems, Inc. (CWST): Among Stocks Insiders Are Selling In March

Casella Waste Systems, Inc. (NASDAQ:CWST) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 24 hedge fund portfolios held Casella Waste Systems, Inc. (NASDAQ:CWST) at the end of the second quarter, up from 21 in the previous quarter. In the second quarter of 2025, Casella Waste Systems, Inc. (NASDAQ:CWST) reported revenues of $465.3 million, up $88.2 million or 23.4% year-over- year. While we acknowledge the risk and potential of Casella Waste Systems, Inc. (NASDAQ:CWST) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Casella Waste Systems, Inc. (NASDAQ:CWST) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Casella Waste Systems, Inc. (NASDAQ:CWST) and shared the list of best waste management stocks to buy. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.