Here’s Why Construction Partners (ROAD) Outperformed in Q3

Conestoga Capital Advisors, an asset management company, released its “Small Cap Growth Fund” third-quarter investor letter. A copy of the same can be downloaded here. The fund declined 4.56% net of fees in the third quarter, compared to a 0.24% return for Russell 2000 Growth Index. Stock selection and negative sector allocation impacted the fund’s performance in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Conestoga Capital Advisors highlighted stocks like Construction Partners, Inc. (NASDAQ:ROAD) in its Q3 2022 investor letter. Headquartered in Dothan, Alabama, Construction Partners, Inc. (NASDAQ:ROAD) is a road infrastructure company. On December 14, 2022, Construction Partners, Inc. (NASDAQ:ROAD) stock closed at $27.96 per share. One-month return of Construction Partners, Inc. (NASDAQ:ROAD) was -10.76%, and its shares lost 16.44% of their value over the last 52 weeks. Construction Partners, Inc. (NASDAQ:ROAD) has a market capitalization of $1.473 billion.

Conestoga Capital Advisors made the following comment about Construction Partners, Inc. (NASDAQ:ROAD) in its Q3 2022 investor letter:

Construction Partners, Inc. (NASDAQ:ROAD): Fiscal third quarter revenue and adjusted EBITDA materially beat expectations due to strong demand, favorable weather, and pricing. Total revenue jumped 45% year-over-year with organic growth of 25%. Backlog surged 62% and orders grew 38%. Looking forward, ROAD sees a continuation in robust demand and margin expansion as newly negotiated contracts better reflect the pricing necessary to offset inflation and supply chain challenges.”

Construction Partners, Inc. (NASDAQ:ROAD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 8 hedge fund portfolios held Construction Partners, Inc. (NASDAQ:ROAD) at the end of the third quarter, which was 5 in the previous quarter. We discussed Construction Partners, Inc. (NASDAQ:ROAD) in another article and shared Wasatch Global Investors’ views on the company. In addition, please check out our hedge fund investor letters Q3 2022 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.