Is CSG Systems (CSGS) an Attractively Priced Stock?

Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund returned 8.60% compared to a 4.97% return for the Russell 2000 Value Index. Moreover, the Fund returned 5.87% YTD, compared to -3.16% for the index. Additionally, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second-quarter 2025 investor letter, FPA Queens Road Small Cap Value Fund highlighted stocks such as CSG Systems International, Inc. (NASDAQ:CSGS). CSG Systems International, Inc. (NASDAQ:CSGS) is a technology company that provides solutions for revenue management and digital monetization, customer experience, and payment. The one-month return of CSG Systems International, Inc. (NASDAQ:CSGS) was 0.03%, and its shares gained 31.71% of their value over the last 52 weeks. On August 18, 2025, CSG Systems International, Inc. (NASDAQ:CSGS) stock closed at $62.35 per share, with a market capitalization of $1.794 billion.

FPA Queens Road Small Cap Value Fund stated the following regarding CSG Systems International, Inc. (NASDAQ:CSGS) in its second quarter 2025 investor letter:

"CSG Systems International, Inc. (NASDAQ:CSGS) makes software that manages customer relationships and billing for telecom companies. Under CEO Brian Shephard, we think the company has done an admirable job adding geographic and customer diversification. On May 7, 2025, CSGS reported strong first quarter earnings results while raising 2025 margin and cash flow guidance. We think that CSGS is attractively priced for a growing, defensive franchise."

CSG Systems International, Inc. (NASDAQ:CSGS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held CSG Systems International, Inc. (NASDAQ:CSGS) at the end of the first quarter, which was 23 in the previous quarter. While we acknowledge the potential of CSG Systems International, Inc. (NASDAQ:CSGS) 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.

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.