Should You Consider Selling Your Position in SPS Commerce (SPSC)?

1 hour ago 2

Soumya Eswaran

Tue, April 28, 2026 astatine 8:09 AM CDT 3 min read

Conestoga Capital Advisors, an plus absorption company, released its first-quarter 2026 capitalist letter. A transcript of the missive tin beryllium downloaded here. The archetypal 4th of 2026 began with optimism astir the home system and charismatic Small Cap valuations, but was impacted by volatility from Middle East geopolitical unrest and changing involvement complaint expectations. This unrest drove vigor prices up and created cautious planetary markets. Energy, Basic Materials, and Industrials performed well, portion bundle companies faced challenges owed to AI disruption concerns. Market sensitivity to geopolitical events, vigor prices, and ostentation remains high. The Conestoga Small Cap Composite fell 5.01%, underperforming the Russell 2000 Growth’s -2.81% return. The diminution was driven by antagonistic banal enactment and headwinds successful Technology and Health Care, with assemblage allocation benefits insufficient to offset losses. In addition, delight cheque the Strategy’s apical 5 holdings to cognize its champion picks successful 2026.

In its first-quarter 2026 capitalist letter, Conestoga Capital Advisors highlighted stocks similar SPS Commerce, Inc. (NASDAQ:SPSC). SPS Commerce, Inc. (NASDAQ:SPSC) is simply a cloud-based bundle institution that provides proviso concatenation absorption solutions. On April 27, 2026, SPS Commerce, Inc. (NASDAQ:SPSC) closed astatine $54.88 per share. One-month instrumentality of SPS Commerce, Inc. (NASDAQ:SPSC) was -1.42%, and its shares mislaid 61.35% implicit the past 52 weeks. SPS Commerce, Inc. (NASDAQ:SPSC) has a marketplace capitalization of $2.05 billion.

Conestoga Capital Advisors stated the pursuing regarding SPS Commerce, Inc. (NASDAQ:SPSC) successful its Q1 2026 capitalist letter:

"SPS Commerce, Inc. (NASDAQ:SPSC) provides cloud-based proviso concatenation absorption bundle that standardizes information speech betwixt retailers and suppliers. Despite a bushed connected Q4 2025 earnings, absorption issued a softer 2026 outlook, projecting gross maturation to decelerate to 7%—a notable measurement down from its humanities mid-teens trajectory. This slowdown, combined with sequential declines successful their 3P lawsuit conception and lengthening income cycles, affirmed concerns we person astir the company’s remaining full addressable marketplace and its quality to prolong growth."

Is SPS Commerce Inc. (SPSC) The Best 52-Week Low Stock To Buy Now According to Short Sellers?

SPS Commerce, Inc. (NASDAQ:SPSC) is not connected our database of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 30 hedge money portfolios held SPS Commerce, Inc. (NASDAQ:SPSC) astatine the extremity of the 4th quarter, compared to 33 successful the erstwhile quarter. SPS Commerce, Inc. (NASDAQ:SPSC) reported a beardown Q4 2025, with gross rising 13% year-over-year to 192.7 million. While we admit the imaginable of SPS Commerce, Inc. (NASDAQ:SPSC) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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