Is SPS Commerce (SPSC) an Attractive Investment Choice?

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 SPS Commerce, Inc. (NASDAQ:SPSC) in the Q3 2022 investor letter. Headquartered in Minneapolis, Minnesota, SPS Commerce, Inc. (NASDAQ:SPSC) offers cloud-based supply chain management solutions. On December 14, 2022, SPS Commerce, Inc. (NASDAQ:SPSC) stock closed at $133.83 per share. One-month return of SPS Commerce, Inc. (NASDAQ:SPSC) was 0.41%, and its shares lost 6.87% of their value over the last 52 weeks. SPS Commerce, Inc. (NASDAQ:SPSC) has a market capitalization of $4.823 billion.

Conestoga Capital Advisors made the following comment about SPS Commerce, Inc. (NASDAQ:SPSC) in its Q3 2022 investor letter:

“SPS Commerce, Inc. (NASDAQ:SPSC): SPSC has benefitted from being truly omni-channel and agnostic to where people shop. This contrasts with some software peers that derive revenue just online channels. SPSC beat revenue and earnings expectations for the second quarter and increased their full year guidance. Strength was broad-based with fulfillment consistent with 17% growth and analytics growth accelerating to 12%. SPSC is also benefiting from the industry looking to streamline supply chains and from digital transformations.”

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SPS Commerce, Inc. (NASDAQ:SPSC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held SPS Commerce, Inc. (NASDAQ:SPSC) at the end of the third quarter, which was 14 in the previous quarter. We discussed SPS Commerce, Inc. (NASDAQ:SPSC) in another article and shared Alger Capital’s 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.