Casella Waste Systems (CWST) Stock Rose 5% Despite Mixed Earnings Report

TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the quarter, the fund returned -9.41% (gross) and -9.64% (net), compared to a -11.12% return for the Russell 2000 Growth Index. There was a broad positive sentiment in the market at the beginning of 2025. Expectations for a pro-business and soft regulatory environment lifted global markets in January. However, delays and uncertainties surrounding U.S. policies led to a significant downturn in March. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, TimesSquare Capital U.S. Small Cap Growth Strategy 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 1.88%, and its shares gained 17.79% of their value over the last 52 weeks. On June 23, 2025, Casella Waste Systems, Inc. (NASDAQ:CWST) stock closed at $117.83 per share, with a market capitalization of $7.478 billion.

TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding Casella Waste Systems, Inc. (NASDAQ:CWST) in its Q1 2025 investor letter:

“Many of our Industrial positions provide necessary business-to-business operational services, highly technical components, equipment enabling automation & efficiency improvements, or essential infrastructure services. Casella Waste Systems, Inc. (NASDAQ:CWST) is a vertically integrated solid waste services company. Its stock price improved by 5% despite a mixed earnings report that included higher revenues, though lower-than-expected profits. Pricing and volume growth were favorable in the resource solutions business, while solid waste generated a modest upside with better pricing. Lower margin acquisitions and an unfavorable mix shift weighed on profits. “

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

Aerial shot of a recycling plant and its surrounding environment, highlighting the company’s commitment to environmental sustainability.

Casella Waste Systems, Inc. (NASDAQ:CWST) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held Casella Waste Systems, Inc. (NASDAQ:CWST) at the end of the first quarter, which was 24 in the previous quarter. Casella Waste Systems, Inc.’s (NASDAQ:CWST) revenues in the first quarter were $417.1 million, up 22.3% year-over-year. While we acknowledge the potential of Casella Waste Systems, Inc. (NASDAQ:CWST) 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 undervalued AI stock set for massive gains.

In another article, we covered Casella Waste Systems, Inc. (NASDAQ:CWST) and shared Conestoga Capital Advisors’ 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. While we acknowledge the potential of CWST 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.

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