Robust Demand Sends Construction Partners (ROAD) Higher

Conestoga Capital Advisors, an asset management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter began with a historically poor start but gained momentum later as tariff fears subsided and market volatility dropped precipitously. Conestoga Small Cap Composite returned 4.76% in the quarter compared to 11.97% for the Russell 2000 Growth Index. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2025.

In its second quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as Construction Partners, Inc. (NASDAQ:ROAD). Construction Partners, Inc. (NASDAQ:ROAD) is a civil infrastructure company that constructs and maintains roadways. The one-month return of Construction Partners, Inc. (NASDAQ:ROAD) was -2.49%, and its shares gained 64.72% of their value over the last 52 weeks. On July 24, 2025, Construction Partners, Inc. (NASDAQ:ROAD) stock closed at $103.36 per share, with a market capitalization of $5.791 billion.

Conestoga Capital Advisors stated the following regarding Construction Partners, Inc. (NASDAQ:ROAD) in its second quarter 2025 investor letter:

“Construction Partners, Inc. (NASDAQ:ROAD): ROAD has been a leader in seven of the past nine quarters, driven by robust demand in the road maintenance and infrastructure market. This is partially driven by the infrastructure investment made by the Federal government. ROAD reported solid fiscal 2Q results that exceeded expectations. Organic revenue increased, EBITDA margins expanded, and a strong book-to-bill led to another record backlog figure.”

Construction Partners, Inc. (ROAD): Among Most Expensive Stocks Insiders Are Buying After Trump’s Tariff Rollout

An aerial view of a bridge under construction with workers continuing their work despite the early morning light.

Construction Partners, Inc. (NASDAQ:ROAD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held Construction Partners, Inc. (NASDAQ:ROAD) at the end of the first quarter, which was 21 in the previous quarter. Construction Partners, Inc.’s (NASDAQ:ROAD) revenue was $571.7 million in Q1 2025, marking an increase of 54% compared Q1 2024. While we acknowledge the risk and potential of Construction Partners, Inc. (NASDAQ:ROAD) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Construction Partners, Inc. (NASDAQ:ROAD) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Construction Partners, Inc. (NASDAQ:ROAD) and shared Polen US SMID Company Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

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