Do You Believe in the Growth Potential of BILL Holdings (BILL)?

Parnassus Investments, an investment management company, released the “Parnassus Mid Cap Growth Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The Russell Midcap Growth Index fell 7.12% in the first quarter, starting with a continuation of the late 2024 rally but later experiencing a sharp decline. The Fund (Investor Shares) fell -9.98% (net of fees) in the quarter, compared to the Russell Midcap Growth Index’s -7.12% fall. Stock selection in Consumer Discretionary and Industrials contributed to the relative performance, while Communication Services and Health Care detracted. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Parnassus Mid Cap Growth Fund highlighted stocks such as BILL Holdings, Inc. (NYSE:BILL). BILL Holdings, Inc. (NYSE:BILL) provides cloud-based software solutions to simplify, digitize, and automate complex back-office financial operations. The one-month return of BILL Holdings, Inc. (NYSE:BILL) was 5.54%, and its shares lost 9.31% of their value over the last 52 weeks. On July 2, 2025, BILL Holdings, Inc. (NYSE:BILL) stock closed at $48.21 per share, with a market capitalization of $4.97 billion.

Parnassus Mid Cap Growth Fund stated the following regarding BILL Holdings, Inc. (NYSE:BILL) in its Q1 2025 investor letter:

"We initiated positions in several disruptive, highly innovative companies whose valuations fell sharply during the sell-off. We re-initiated a position in BILL Holdings, Inc. (NYSE:BILL), which operates an innovative SMB-focused payments automation platform (Bill.com). We see significant growth potential ahead resulting from its ability to further penetrate the market for small-to medium-sized businesses."

BILL Holdings, Inc. (NYSE:BILL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 53 hedge fund portfolios held BILL Holdings, Inc. (NYSE:BILL) at the end of the first quarter, which was 64 in the previous quarter. In the fiscal third quarter of 2025, BILL Holdings, Inc. (NYSE:BILL) reported revenue of $358 million up 11% year-over-year. While we acknowledge the potential of BILL Holdings, Inc. (NYSE:BILL) 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 BILL Holdings, Inc. (NYSE:BILL) and shared the list of best tech stocks to buy on the dip. 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 BILL 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.