Should You Consider Adding Manhattan Associates (MANH) to Your Portfolio?

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 Manhattan Associates, Inc. (NASDAQ:MANH). Manhattan Associates, Inc. (NASDAQ:MANH) provides software solutions to manage supply chains, inventory, and omnichannel operations. The one-month return of Manhattan Associates, Inc. (NASDAQ:MANH) was -1.52%, and its shares lost 12.59% of their value over the last 52 weeks. On June 6, 2025, Manhattan Associates, Inc. (NASDAQ:MANH) stock closed at $192.78 per share, with a market capitalization of $11.705 billion.

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

“During the quarter, we added five new positions in SAIA, Construction Partners, Comfort Systems USA, Wingstop, and Manhattan Associates, Inc. (NASDAQ:MANH). We also added to several existing positions.

Manhattan Associates is the leading provider of software for warehouses and distribution centers. We have followed the company in our library for several years. Manhattan provides software that serves as the operating system for distribution and supply chain management. The company has a long history of leadership and innovation in this space. Almost 10 years ago, the company embarked on a SaaS transition in which it completely rebuilt its software in a subscription and cloud-based, but also modular model. The transformation has improved both the value proposition and speed of innovation, the business model, and the growth rate. The transition has also opened markets beyond Manhattan’s traditional large retail customer. At the same time, as a slow-moving Saas transition, it is not uncommon for expectations to ramp up only to reset lower as it becomes clearer that the transition will take time. These can be great buying opportunities for investors willing to look out a few years, and we believe the first quarter presented this opportunity to own Manhattan at an attractive valuation.”

Is Manhattan Associates Inc. (MANH) the Best Growth Stock to Invest In According to Analysts?

A woman and man in formal attire in a meeting room discussing the latest enterprise solutions technology from the company.

Manhattan Associates, Inc. (NASDAQ:MANH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held Manhattan Associates, Inc. (NASDAQ:MANH) at the end of the first quarter, which was 34 in the previous quarter. For the first quarter of 2025, Manhattan Associates, Inc.’s (NASDAQ:MANH) total revenue was $263 million, up 3% from the previous year’s comparable quarter. While we acknowledge the potential of Manhattan Associates, Inc. (NASDAQ:MANH) 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 Manhattan Associates, Inc. (NASDAQ:MANH) and shared the list of best growth stocks to buy for the next 3 years. 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.