Do You Expect an Attractive Risk-Reward Opportunity from Concentrix Corporation (CNXC)?

Loomis Sayles, an investment management company, released its “Small Cap Value Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The first quarter of 2025 saw negative returns for US equity markets, with large-cap indices outperforming small caps. Value stocks were stronger than growth stocks, driven by strong performance in financials and real estate, while growth sectors struggled. In the first quarter, the fund returned 0.16%, outperforming the Russell 2000 Value Index’s -1.06% return. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Loomis Sayles Small Cap Value Fund highlighted stocks such as Concentrix Corporation (NASDAQ:CNXC). Concentrix Corporation (NASDAQ:CNXC) offers technology-infused customer experience (CX) solutions. The one-month return of Concentrix Corporation (NASDAQ:CNXC) was 3.95%, and its shares lost 2.43% of their value over the last 52 weeks. On June 11, 2025, Concentrix Corporation (NASDAQ:CNXC) stock closed at $57.32 per share, with a market capitalization of $3.662 billion.

Loomis Sayles Small Cap Value Fund stated the following regarding Concentrix Corporation (NASDAQ:CNXC) in its Q1 2025 investor letter:

“Concentrix Corporation (NASDAQ:CNXC) provides customer engagement solutions to large enterprises worldwide. The company helps their clients engage with customers through voice, chat and e-mail. The stock price had been facing twin headwinds from both macro-economic weakness and competitive threats from Artificial Intelligence (AI). During the first quarter, Concentrix’s revenue began to demonstrate growth on a year-over-year basis, combined with net margin expansion which resulted in share price appreciation. We are aware of the potential headwind of generative AI, however Chat GPT was released nearly three years ago, and thus far Concentrix headcount continues to increase. Additionally, the company is demonstrating the ability to monetize generative AI. Over the long-term Concentrix has demonstrated the ability to deploy new technologies with domain expertise which has led to improving customer efficiency. As a result of the discounted valuation and nimble management team we continue to see an attractive risk reward and maintain an investment in the company.”

Concentrix (CNXC) Posts Strong Q1 Results, Showcasing AI Leadership in Customer Experience

A digital dashboard detailing customer experience/user experience data.

Concentrix Corporation (NASDAQ:CNXC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held Concentrix Corporation (NASDAQ:CNXC) at the end of the first quarter, which was 29 in the previous quarter. In the first quarter of 2025, Concentrix Corporation (NASDAQ:CNXC) reported revenue of around $2.37 billion. While we acknowledge the potential of Concentrix Corporation (NASDAQ:CNXC) 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 Concentrix Corporation (NASDAQ:CNXC) and shared best affordable tech stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q1 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.