Does Castle Bioscience (CSTL) Have Robust Growth Prospects?
Next Century Growth Investors, LLC, an investment Management Company, released its “SMID Cap Growth Strategy” fourth-quarter investor letter. A copy of the same can be downloaded here. October had negative returns from the equity markets in the fourth quarter of 2023, but November and December saw a robust market rally that produced positive returns for the quarter. The strategy returned 4.84% (net of fees) compared to 12.59% for the Russell 2500™ Growth Index. Over the trailing year, the strategy returned 15.46% compared to 18.93% for the index. In addition, please check the fund’s top five holdings to know its best picks in 2023.
NCG SMID Cap Growth Strategy featured stocks like Castle Biosciences, Inc. (NASDAQ:CSTL) in the fourth quarter 2023 investor letter. Based in Friendswood, Texas, Castle Biosciences, Inc. (NASDAQ:CSTL) is a molecular diagnostics company. On March 19, 2024, Castle Biosciences, Inc. (NASDAQ:CSTL) stock closed at $19.36 per share. One-month return of Castle Biosciences, Inc. (NASDAQ:CSTL) was -21.59%, and its shares lost 10.20% of their value over the last 52 weeks. Castle Biosciences, Inc. (NASDAQ:CSTL) has a market capitalization of $531.432 million.
NCG SMID Cap Growth Strategy stated the following regarding Castle Biosciences, Inc. (NASDAQ:CSTL) in its fourth quarter 2023 investor letter:
"Castle Biosciences, Inc. (NASDAQ:CSTL) is a medical diagnostics company with a portfolio of tests addressing skin cancer, esophagus cancer, and mental health. CSTL is another name we have owned in the past, with our sale due to uncertainty regarding their acquisition activities. Since that time, their skin cancer franchise has continued to deliver solid volume growth and the acquisitions have turned out to be solid contributors to the growth of the business. The company remains under-penetrated in all their markets, so we believe growth should remain solid. Valuation has compressed significantly over the last three years, and we believe they have the balance sheet strength to continue driving growth while moving toward cash flow breakeven in 2025."
An overhead shot of a medical laboratory with a technician in a face mask working on a diagnostic blood test.
Castle Biosciences, Inc. (NASDAQ:CSTL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Castle Biosciences, Inc. (NASDAQ:CSTL) was held by 22 hedge fund portfolios, compared to 15 in the previous quarter, according to our database. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
Disclosure: None. This article is originally published at Insider Monkey.
