Should You Add SPS Commerce (SPSC) to Your Portfolio?
Alger Capital, an investment management company, released its “Alger Weatherbie Specialized Growth Fund” third quarter investor letter. A copy of the same can be downloaded here. During the quarter, Class A shares of the fund underperformed the Russell 2500 Growth Index. The Information technology and Industrials sectors contributed to the fund’s relative performance in the quarter, while Health Care and Energy sectors detracted from performance. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Alger Capital highlighted stocks like SPS Commerce, Inc. (NASDAQ:SPSC) in the Q3 2022 investor letter. Headquartered in Minneapolis, Minnesota, SPS Commerce, Inc. (NASDAQ:SPSC) offers cloud-based supply chain management solutions. On December 13, 2022, SPS Commerce, Inc. (NASDAQ:SPSC) stock closed at $137.97 per share. One-month return of SPS Commerce, Inc. (NASDAQ:SPSC) was 2.38%, and its shares lost 0.50% of their value over the last 52 weeks. SPS Commerce, Inc. (NASDAQ:SPSC) has a market capitalization of $4.973 billion.
Alger Capital made the following comment about SPS Commerce, Inc. (NASDAQ:SPSC) in its Q3 2022 investor letter:
"SPS Commerce, Inc. (NASDAQ:SPSC) offers supply chain management applications for retailers, suppliers, grocers, distributors, and logistics companies, providing a full network solution for retail trading partners. The company's core product, fulfillment, provides fulfillment automation for suppliers and replaces or augments an organization's existing staff and trading partner electronic communication infrastructure by enabling easy compliance with retailers' rulebooks, the automatic exchange of information among numerous trading partners and greater visibility into the journey of an order.
We believe SPS is well positioned to benefit from the retail shift to omnichannel sales, as demonstrated by accelerating customer growth and growth in recurring revenue per customer (wallet share). The stock outperformed following SPS' earnings call for the second quarter, where revenues came in above consensus estimates. Further, management reaffirmed their long-term revenue growth target of 15%, while maintaining its long-term earnings before interest, taxes, depreciation, and amortization (EBITDA) margin target of 35%."
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SPS Commerce, Inc. (NASDAQ:SPSC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held SPS Commerce, Inc. (NASDAQ:SPSC) at the end of the third quarter, which was 14 in the previous quarter.
We discussed SPS Commerce, Inc. (NASDAQ:SPSC) in another article and shared Headwaters Capital’s views on the company. In addition, please check out our hedge fund investor letters Q3 2022 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.
