Should You Hold Exponent (EXPO) for the Long Term?

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 Exponent, Inc. (NASDAQ:EXPO). Exponent, Inc. (NASDAQ:EXPO) is a science and engineering consulting company. The one-month return of Exponent, Inc. (NASDAQ:EXPO) was -2.74%, and its shares lost 31.60% of their value over the last 52 weeks. On July 24, 2025, Exponent, Inc. (NASDAQ:EXPO) stock closed at $72.13 per share, with a market capitalization of $3.661 billion.

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

“Exponent, Inc. (NASDAQ:EXPO): EXPO is a scientific and engineering consulting firm that specializes in highly technical analysis across more than 90 scientific disciplines. EXPO reported better-than-expected 1Q results, with EBITDA and EPS coming in well ahead of consensus expectations. EXPO reiterated full year guidance. This didn’t prevent EXPO’s stock from declining during the quarter as the company’s growth is still below target as it catches up on hiring to meet end-market demand. We had the CEO and CFO in our offices and remain convicted that EXPO is on the verge of catching the growth algorithm they’ve historically grown at as hiring accelerates and pricing power remains strong.”

Exponent, Inc. (EXPO): Among the Overlooked Dividend Stocks to Buy Now

A chemical engineer studying a lab sample of a food product for safety regulations.

Exponent, Inc. (NASDAQ:EXPO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 35 hedge fund portfolios held Exponent, Inc. (NASDAQ:EXPO) at the end of the first quarter compared to 21 in the previous quarter. In the first quarter of 2025, Exponent, Inc. (NASDAQ:EXPO) reported revenue of $145.5 million, which was approximately flat compared to Q1 2024. While we acknowledge the risk and potential of Exponent, Inc. (NASDAQ:EXPO) 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 Exponent, Inc. (NASDAQ:EXPO) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Exponent, Inc. (NASDAQ:EXPO) and shared the list of best overlooked stocks that pay dividends. In addition, please check out our hedge fund investor letters Q2 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.