Conestoga Capital Advisors, an asset management company, released its first-quarter 2026 investor letter. A copy of the letter can be downloaded here. The first quarter of 2026 began with optimism about the domestic economy and attractive Small Cap valuations, but was impacted by volatility from Middle East geopolitical unrest and changing interest rate expectations. This unrest drove energy prices up and created cautious global markets. Energy, Basic Materials, and Industrials performed well, while software companies faced challenges due to AI disruption concerns. Market sensitivity to geopolitical events, energy prices, and inflation remains high. The Conestoga Small Cap Composite fell 5.01%, underperforming the Russell 2000 Growth’s -2.81% return. The decline was driven by negative stock selection and headwinds in Technology and Health Care, with sector allocation benefits insufficient to offset losses. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Conestoga Capital Advisors highlighted stocks like Casella Waste Systems, Inc. (NASDAQ:CWST). Casella Waste Systems, Inc. (NASDAQ:CWST) is a vertically integrated solid waste services company that offers resource management expertise and services. On April 24, 2026, Casella Waste Systems, Inc. (NASDAQ:CWST) closed at $80.19 per share. One-month return of Casella Waste Systems, Inc. (NASDAQ:CWST) was 2.28%, and its shares lost 31.00% over the past 52 weeks. Casella Waste Systems, Inc. (NASDAQ:CWST) has a market capitalization of $5.12 billion.
Conestoga Capital Advisors stated the following regarding Casella Waste Systems, Inc. (NASDAQ:CWST) in its Q1 2026 investor letter:
“Casella Waste Systems, Inc. (NASDAQ:CWST) provides solid waste collection, recycling, and resource management services. The stock underperformed as investors are growing impatient with the company’s margin trajectory. While Casella closed the year on a high note with 60 basis points of improvement in EBITDA margin, including 100 bps organic, the company guided to just 0-40 basis points in F26. This is the below the 25-50 basis points previewed on the third quarter earnings call and attributable largely to the pending closure of one of its landfills in New Hampshire. We expect to see upside to this guidance through gains at its most challenged Mid Atlantic region.”
Casella Waste Systems, Inc. (NASDAQ:CWST) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 28 hedge fund portfolios held Casella Waste Systems, Inc. (NASDAQ:CWST) at the end of the fourth quarter, up from 26 in the previous quarter. Casella Waste Systems, Inc.’s (NASDAQ:CWST) Q4 2025 revenue increased 9.7% year-over-year to $469.1 million. While we acknowledge the risk and potential of Casella Waste Systems, Inc. (NASDAQ:CWST) 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 Casella Waste Systems, Inc. (NASDAQ:CWST) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Casella Waste Systems, Inc. (NASDAQ:CWST) and shared TimesSquare Capital U.S. Small Cap Growth Strategy’s view on the company in Q4 2025. In addition, please check out our hedge fund investor letters Q1 2026 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.
