Will Verisk Analytics (VRSK) Benefit from Its Defensive Qualities?

Fidelity Investments, an investment management company, recently released its “Fidelity Growth Strategies Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The Fidelity Growth Strategies Fund is a diversified domestic equity strategy with a focus on mid-cap growth investments. The fund focuses on investing in high-quality companies that demonstrate consistent growth and generate positive free cash flow. The fund’s Retail Class shares returned -8.03% in the first quarter, underperforming the -7.12% return of the benchmark Russell Midcap Growth Index. U.S. mid-cap growth stocks rose in January but then fell in February and March as post-election optimism was replaced by concern over executive actions, government disruptions, and rising uncertainty about trade and tariffs. In addition, you can check the fund’s top 5 holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Fidelity Growth Strategies Fund highlighted stocks such as Verisk Analytics, Inc. (NASDAQ:VRSK). Verisk Analytics, Inc. (NASDAQ:VRSK) offers data analytics solutions to the insurance markets. The one-month return of Verisk Analytics, Inc. (NASDAQ:VRSK) was -1.44%, and its shares gained 14.90% of their value over the last 52 weeks. On July 1, 2025, Verisk Analytics, Inc. (NASDAQ:VRSK) stock closed at $312.95 per share, with a market capitalization of $43.777 billion.

Fidelity Growth Strategies Fund stated the following regarding Verisk Analytics, Inc. (NASDAQ:VRSK) in its Q1 2025 investor letter:

“Not holding Verisk Analytics, Inc. (NASDAQ:VRSK) (+8%), which provides data analysis and tech services to the insurance industry, further detracted from relative performance. Verisk has posted solid revenue growth in recent quarters and is viewed as a relatively recession-resistant business – its defensive qualities appeared to help the stock gain amid market volatility this quarter.”

An engineer using the latest predictive analytics software to formulate solutions.

Verisk Analytics, Inc. (NASDAQ:VRSK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held Verisk Analytics, Inc. (NASDAQ:VRSK) at the end of the first quarter, which was 40 in the previous quarter. In the first quarter of 2025, Verisk Analytics, Inc. (NASDAQ:VRSK) generated $753 million in revenues, representing an increase of 7% from Q1 2024. While we acknowledge the potential of Verisk Analytics, Inc. (NASDAQ:VRSK) 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 Verisk Analytics, Inc. (NASDAQ:VRSK) and shared Baron Asset Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of VRSK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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