Will CCC Intelligent Solutions Holdings (CCCS) Benefit from growth in the Used Car Market?

Artisan Partners, an investment management company, released its “Artisan Mid Cap Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, the fund’s Investor Class fund ARTMX returned -7.40%, Advisor Class fund APDMX posted a return of -7.37%, and Institutional Class fund APHMX returned -7.35%, compared to a -7.12% return for the Russell Midcap Growth Index. US equities achieved solid Q4 gains, concluding a strong year. After a period of strong growth stock performance in 2023 and 2024, value stocks gained the lead in Q1 2025. In a risk-averse environment, investors shifted towards lower-volatility equities, especially in the utilities and consumer staples sectors, alongside those with higher dividend yields. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Artisan Mid Cap Fund highlighted stocks such as CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS). CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) is a software-as-a-service provider for the P&C insurance economy. The one-month return of CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) was 1.88%, and its shares lost 15.69% of their value over the last 52 weeks. On May 5, 2025, CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) stock closed at $9.19 per share with a market capitalization of $6.056 billion.

Artisan Mid Cap Fund stated the following regarding CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) in its Q1 2025 investor letter:

"Notable adds in the quarter included DoorDash, CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) and Bright Horizons. CCC Intelligent Solutions is the largest software provider for accident claims processing by US insurance companies and for the US auto repair facilities market. The company’s scale and longevity (founded in 1980) give it knowledge advantages in areas such as expected repair costs, parts availability and repair workflows. We believe the company will drive growth by continuing to cross-sell and up-sell to its legacy customer base, expand its market share and use AI to leverage its vast amounts of industry data in order to help customers realize productivity gains. Similar to AutoZone, we believe the used car market, and related maintenance activity, should experience resilient growth in an environment where new car prices are likely to rise due to tariffs. We added to our position."

CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) at the end of the fourth quarter compared to 20 in the third quarter. While we acknowledge the potential of CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) 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 cheapest AI stock.

In another article, we covered CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) and shared Conestoga Capital Advisors' 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.

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