Here’s Why Progyny (PGNY) Rebounded in Q1

Polen Capital, an investment management company, released its “Polen US SMID Company Growth Strategy” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. The initial market optimism after the Presidential election gave way to fear and uncertainty in the first quarter of 2025. Against this backdrop, the fund returned -12.38% gross, and -12.65% net of fees compared to the Russell 2500 Growth Index return of -10.80%. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.

In its first-quarter 2025 investor letter, Polen US SMID Company Growth Strategy highlighted stocks such as Progyny, Inc. (NASDAQ:PGNY). Progyny, Inc. (NASDAQ:PGNY) is a benefits management company that focuses on fertility and family-building benefits solutions. The one-month return of Progyny, Inc. (NASDAQ:PGNY) was 1.59%, and its shares lost 21.45% of their value over the last 52 weeks. On June 6, 2025, Progyny, Inc. (NASDAQ:PGNY) stock closed at $21.68 per share, with a market capitalization of $1.858 billion.

Polen US SMID Company Growth Strategy stated the following regarding Progyny, Inc. (NASDAQ:PGNY) in its Q1 2025 investor letter:

“Progyny, Inc. (NASDAQ:PGNY) is the leader in fertility benefits. After a weak 2024, the stock rebounded in December and again in January as the company revised its 4Q24 guidance higher. Further, news that large health insurer Cigna would be expanding access to Fertility and Family-Building Benefits and Services was well received by investors.”

A close up of a hand, fingers wrapped around a fertility specialist syringe.

Progyny, Inc. (NASDAQ:PGNY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held Progyny, Inc. (NASDAQ:PGNY) at the end of the first quarter, which was 28 in the previous quarter. Progyny, Inc. (NASDAQ:PGNY) reported record revenue of $324 million, an increase of 16.5% from Q1 2024. While we acknowledge the potential of Progyny, Inc. (NASDAQ:PGNY) 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 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.