Does ePlus (PLUS) Have the Potential For Value Appreciation?
The London Company, an investment management company, released “The London Company Small Cap Strategy” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. In the fourth quarter, US stocks experienced a significant surge, causing major indices to record double-digit gains. In the quarter, the fund returned 11.9% (11.7% net) compared to a 14% increase in the Russell 2000 Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
The London Company Small Cap Strategy featured stocks such as ePlus inc. (NASDAQ:PLUS) in the fourth quarter 2023 investor letter. Headquartered in Herndon, Virginia, ePlus inc. (NASDAQ:PLUS) provides information technology (IT) solutions. On February 7, 2024, ePlus inc. (NASDAQ:PLUS) stock closed at $68.07 per share. One-month return of ePlus inc. (NASDAQ:PLUS) was -11.45%, and its shares gained 19.05% of their value over the last 52 weeks. ePlus inc. (NASDAQ:PLUS) has a market capitalization of $1.835 billion.
The London Company Small Cap Strategy stated the following regarding ePlus inc. (NASDAQ:PLUS) in its fourth quarter 2023 investor letter:
"Initiated: ePlus inc. (NASDAQ:PLUS) - PLUS specializes in providing IT solutions and optimizing organizations' IT and supply chain processes in the U.S. With a focus on the specialized IT sector, including data center infrastructure, networking, security, cloud, and collaboration, PLUS has gained market share in a fragmented reseller market. Prioritizing client tech spending areas has led to double-digit growth and industry-leading gross margins of about 24%, with EBIT margins at 8%. PLUS boasts a robust balance sheet with $20M in net cash, and we see potential for value appreciation, trading below conservative intrinsic value estimates."
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ePlus inc. (NASDAQ:PLUS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held ePlus inc. (NASDAQ:PLUS) at the end of third quarter which was 17 in the previous quarter.
We discussed ePlus inc. (NASDAQ:PLUS) in another article and shared cheap software stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q4 2023 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.
