Do You Believe in Construction Partners' (ROAD) Improved Long-Term Growth Prospects?

Conestoga Capital Advisors, an asset management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets continued their momentum that began in early April, reaching new all-time highs in the third quarter. In the quarter, the Conestoga Small Cap Composite returned -1.4% net-of-fees, underperforming the Russell 2000 Growth Index’s impressive 12.2% gain. Most of the Index's gains come from low-quality stock leadership, where unprofitable, high-beta names have considerably outperformed. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2025.

In its third-quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as Construction Partners, Inc. (NASDAQ:ROAD). Construction Partners, Inc. (NASDAQ:ROAD) is a civil infrastructure company that constructs and maintains roadways. The one-month return of Construction Partners, Inc. (NASDAQ:ROAD) was -13.96%, and its shares gained 35.79% of their value over the last 52 weeks. On October 17, 2025, Construction Partners, Inc. (NASDAQ:ROAD) stock closed at $115.01 per share, with a market capitalization of $6.451 billion.

Conestoga Capital Advisors stated the following regarding Construction Partners, Inc. (NASDAQ:ROAD) in its third quarter 2025 investor letter:

"Construction Partners, Inc. (NASDAQ:ROAD) provides road construction and maintenance services, including paving, grading, and site development. Infrastructure spending tailwinds from federal and state programs has fueled backlog growth and revenue visibility. The company also benefited from lower asphalt and fuel costs, which supported margin recovery, and strong project execution across its Southeastern U.S. footprint. Management’s disciplined acquisition strategy has expanded its market presence into Texas, Tennessee, and Oklahoma and deepened customer relationships, enhancing long-term growth prospects."

Construction Partners, Inc. (NASDAQ:ROAD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held Construction Partners, Inc. (NASDAQ:ROAD) at the end of the second quarter, which was 15 in the previous quarter. Construction Partners, Inc.’s (NASDAQ:ROAD) revenue was $779.3 million in fiscal Q3 2025, marking an increase of 51% compared fiscal Q3 2024. While we acknowledge the potential of Construction Partners, Inc. (NASDAQ:ROAD) 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 another article, we covered Construction Partners, Inc. (NASDAQ:ROAD) and shared the list of stocks to watch as top analyst predicts AI surge will continue despite bubble worries. In addition, please check out our hedge fund investor letters Q3 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.