Here’s What Raised Investors’ Unease Over FirstService Corp. (FSV)
Conestoga Capital Advisors, an asset management company, released its fourth-quarter 2025 investor letter. As many believe, US equities experienced solid returns in 2025, with double-digit gains across all major indices, yet underlying conditions revealed extreme volatility and market leadership. A copy of the letter can be downloaded here. In Q4 2025, Conestoga Capital Advisors Small Cap Strategy returned -1.89% net-of-fees, trailing the Russell 2000 Growth Index’s 1.22% return. The returns were volatile in the quarter. The “low quality” stocks rally persisted in the quarter, but at a slower pace compared to earlier quarters. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as FirstService Corporation (NASDAQ:FSV). FirstService Corporation (NASDAQ:FSV) is a real estate services company that offers residential property management and other essential property services. On February 18, 2026, FirstService Corporation (NASDAQ:FSV) stock closed at $156.86 per share. One-month return of FirstService Corporation (NASDAQ:FSV) was -1.90%, and its shares lost 10.27% of their value over the last 52 weeks. FirstService Corporation (NASDAQ:FSV) has a market capitalization of $7.182 billion.
Conestoga Capital Advisors stated the following regarding FirstService Corporation (NASDAQ:FSV) in its fourth quarter 2025 investor letter:
"FirstService Corporation (NASDAQ:FSV) is a leading provider of essential property services to residential and commercial customers in North America. Shares detracted from performance after the company reported third-quarter revenues that fell short of consensus expectations, despite meeting earnings per share estimates. Investors expressed concern over softer organic growth and near-term headwinds in certain service lines. We continue to believe the company’s recurring revenue model and leadership position in fragmented markets remain intact for the long term."
FirstService Corporation (NASDAQ:FSV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 25 hedge fund portfolios held FirstService Corporation (NASDAQ:FSV) at the end of the third quarter, compared to 27 in the previous quarter. While we acknowledge the potential of FirstService Corporation (NASDAQ:FSV) 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 thebest short-term AI stock.
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