Brown Capital Management, an investment management company, released its fourth quarter 2025 investor letter for “The Brown Capital Management Small Company Fund”. A copy of the letter can be downloaded here. In the fourth quarter of 2025, the Small Company Fund (Investor shares) fell 1.50%, behind the Russell 2000® Growth index's 1.22% gain. Real estate and telecommunications businesses led the benchmark's performance for the quarter. The Fund was down 11.46% in 2025, significantly lagging the Index’s 13.0 ...

Core Insights - Brown Capital Management's Small Company Fund underperformed in Q4 2025, with a decline of 1.50% compared to the Russell 2000® Growth index's gain of 1.22% [1] - The Fund's performance for the entire year of 2025 was down 11.46%, significantly lagging behind the Index's return of 13.01% [1] - The Fund's investment strategy is focused on company fundamentals, which showed strong revenue and earnings growth in 2025 [1] Company Focus: Veracyte, Inc. - Veracyte, Inc. is highlighted as a key holding in the Fund, with a market capitalization of $2.817 billion [2] - The stock price of Veracyte, Inc. closed at $35.63 on February 20, 2026, with a one-month return of -12.18% and a 52-week loss of 9.48% [2] - Veracyte holds a dominant market position with over 50% market share in its core products, Decipher and Afirma, which contributed more than 90% of revenue in 2024 [3] - The Decipher product has a market penetration of only 40%, indicating potential for double-digit growth in the coming years, while Afirma offers stability due to higher market penetration [3] - Veracyte's product pipeline could expand its market opportunity by over $3 billion, including tests for breast cancer, prostate cancer, and lung cancer [3] - The company turned profitable in 2024 and has shown significant margin expansion, with expectations for further growth [3] - Veracyte maintains a strong balance sheet with over $400 million in cash and has been free cash flow positive since 2023 [3]

Brown Capital Management, an investment management company, released its fourth quarter 2025 investor letter for “The Brown Capital Management Small Company Fund”. A copy of the letter can be downloaded here. In the fourth quarter of 2025, the Small Company Fund (Investor shares) fell 1.50%, behind the Russell 2000® Growth index's 1.22% gain. Real estate and telecommunications businesses led the benchmark's performance for the quarter. The Fund was down 11.46% in 2025, significantly lagging the Index’s 13.0 ...

Brown Capital Management, an investment management company, released its fourth quarter 2025 investor letter for “The Brown Capital Management Small Company Fund”. A copy of the letter can be downloaded here. In the fourth quarter of 2025, the Small Company Fund (Investor shares) fell 1.50%, behind the Russell 2000® Growth index's 1.22% gain. Real estate and telecommunications businesses led the benchmark's performance for the quarter. The Fund was down 11.46% in 2025, significantly lagging the Index’s 13.0 ...

Earnings Performance - CSG Systems reported quarterly earnings of $1.53 per share, exceeding the Zacks Consensus Estimate of $1.33 per share, but down from $1.65 per share a year ago [1] - The earnings surprise for the quarter was +15.04%, following a previous quarter surprise of +18.02% [2] Revenue Performance - The company posted revenues of $294.92 million for the quarter, which was 1.24% below the Zacks Consensus Estimate, compared to $290.59 million in the same quarter last year [3] - CSG Systems has surpassed consensus revenue estimates three times in the last four quarters [3] Stock Performance and Outlook - CSG Systems shares have increased approximately 3.9% since the beginning of the year, outperforming the S&P 500's gain of 1.1% [4] - The company's future stock performance will largely depend on management's commentary during the earnings call and the earnings outlook [4][5] Earnings Estimates and Industry Outlook - The current consensus EPS estimate for the upcoming quarter is $1.19 on revenues of $276.12 million, and for the current fiscal year, it is $5.19 on revenues of $1.15 billion [8] - The Computer - Services industry is currently ranked in the top 40% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [9]

Industry Overview - The Zacks Computer - Services industry includes companies providing cloud and software-based solutions, including consulting, research, security, and business support solutions [2] - Participants serve various sectors such as intelligence, defense, government agencies, banking, financial services, insurance, healthcare, and media [2] Current Trends - The shift towards remote and hybrid work is driving demand for cloud and cost-efficient business support solutions, enhancing industry growth prospects [3] - Increasing cyberattacks are creating a heightened need for cybersecurity solutions, particularly within government agencies [4] - Regulatory compliance is becoming more complex, leading to increased demand for services that help businesses adhere to governmental and industry norms [5] Industry Performance - The Zacks Computer - Services industry ranks 47, placing it in the top 19% of over 244 Zacks industries, indicating positive near-term prospects [6][7] - The industry's earnings outlook is optimistic, with a 7.7% increase in the Zacks Consensus Estimate for 2026 earnings since March 31, 2025 [8] Stock Market Performance - Over the past year, the industry has underperformed compared to the broader Zacks Computer and Technology sector and the S&P 500, with a rise of 10.7% versus 19.7% and 27.6% respectively [11] - The industry is currently trading at a forward 12-month P/E of 16.85X, lower than the S&P 500's 23.51X and the sector's 27.94X [14] Notable Companies - **PDF Solutions (PDFS)**: Focuses on data solutions for semiconductor and electronics ecosystems, benefiting from increasing complexity in manufacturing processes and investments in AI-driven collaboration [16][17] - **WidePoint (WYY)**: Provides Technology Management as a Service (TMaaS) and is positioned to benefit from a growing addressable market worth $36 billion, driven by remote work and cybersecurity needs [22][23] - **Forian (FORA)**: Offers data science-driven solutions to healthcare and financial services, with expected revenues between $28 million and $30 million for 2025, indicating a growth of 39-40% from 2024 [26][27]

Core Viewpoint - PDF Solutions, Inc. (NASDAQ:PDFS) is identified as a promising tech stock with strong analyst support and a positive growth outlook [2][4]. Group 1: Analyst Sentiment and Price Target - All analysts covering PDF Solutions are bullish, with a consensus 1-year median price target of $35.00, indicating an upside potential of 18.10% [2]. - DA Davidson raised its price target on PDF Solutions from $34 to $36 while maintaining a "Buy" rating, reflecting confidence in the company's growth prospects [4]. Group 2: Stock Performance - On December 10, 2025, PDF Solutions reached a 52-week high of $31.84, with six-month returns of 40.45% and one-month returns of 14.22%, although it closed at $27.95 on December 19 [3]. Group 3: Company Growth Projections - Management projects a revenue growth of 20% year-over-year and a 700-basis point expansion in non-GAAP operating margin over the coming year [5]. - The addressable market for PDF Solutions is expected to double by 2030, indicating significant growth potential [4]. Group 4: Business Focus - PDF Solutions specializes in providing an end-to-end analytics platform for the semiconductor ecosystem, empowering engineers and data scientists, and also offers data analytics for electronics segments [5].

Core Insights - The article discusses the potential of technology stocks to continue their upward trajectory following a strong performance in 2025, supported by historical trends indicating that top-performing sectors often maintain their leadership [1][2]. Industry Overview - Technology sector is projected to experience significant earnings growth, with a 24% increase in 2025, expected to accelerate to approximately 30% in 2026 and 20% in 2027, indicating strong outperformance compared to the overall market [3]. - Valuation concerns that arose after the late-October peak have eased, with the technology sector's premium to its long-term average narrowing significantly by December 23, 2025 [4]. Stock Selection Methodology - The selection process for the best rising tech stocks involved screening companies with over 5% returns in the past month, followed by identifying those with a positive technical trend indicated by the 50-day simple moving average crossing above the 200-day SMA [7]. - Stocks were further filtered based on a forward price-to-earnings (P/E) ratio between 10 and 30 to ensure reasonable valuations despite recent price increases [8]. - Analyst sentiment was incorporated, focusing on stocks with at least 10% upside potential and significant hedge fund interest, assessed using Insider Monkey's hedge fund database [9][10]. Featured Stocks PDF Solutions, Inc. (NASDAQ:PDFS) - Forward P/E of 29.02, with a one-month gain of 14.22% and an upside potential of 25.20% [11]. - Analysts are bullish, with a consensus price target of $35.00, indicating an 18.10% upside [12]. - Management projects a revenue growth of 20% year-over-year and a 700-basis point expansion in non-GAAP operating margin [14]. Synaptics Incorporated (NASDAQ:SYNA) - Forward P/E of 16.57, with a one-month gain of 22.94% and an upside potential of 14.70% [15]. - Wells Fargo initiated coverage with an "Overweight" rating and a $95 price target, citing an attractive risk/reward profile [16]. - The company is transitioning to an IoT chip supplier, launching the Astra SL2600 Series of multimodal Edge AI processors [17][19]. Pegasystems Inc. (NASDAQ:PEGA) - Forward P/E of 29.71, with a one-month gain of 13.24% and an upside potential of 21.80% [21]. - Recent updates to its Pega Client Lifecycle Management platform enhance automation and compliance processes, aligning with market demand for modernization [22][23]. - JPMorgan reiterated an "Overweight" rating, raising the price target to $74, reflecting confidence in the company's growth amid enterprise migration to cloud-based platforms [25].

Core Viewpoint - CGI Group reported quarterly earnings of $1.55 per share, exceeding the Zacks Consensus Estimate of $1.53 per share, and up from $1.41 per share a year ago, indicating a positive earnings surprise of +1.31% [1][2] Financial Performance - The company posted revenues of $2.91 billion for the quarter ended September 2025, which was below the Zacks Consensus Estimate by 0.42%, but an increase from $2.68 billion year-over-year [3] - Over the last four quarters, CGI has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2][3] Stock Performance - CGI shares have declined approximately 21.9% since the beginning of the year, contrasting with the S&P 500's gain of 15.1% [4] - The current Zacks Rank for CGI is 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [7] Future Outlook - The consensus EPS estimate for the upcoming quarter is $1.58 on revenues of $3.03 billion, and for the current fiscal year, it is $6.53 on revenues of $12.16 billion [8] - The outlook for the industry, particularly the Computer - Services sector, is currently in the bottom 40% of Zacks industries, which may impact CGI's stock performance [9]

Company Overview - WidePoint (WYY) shares increased by 12% in the last trading session, closing at $6.36, with trading volume significantly higher than usual [1] - The stock has gained 6% over the past four weeks, indicating a positive trend [1] - WidePoint's strong position is attributed to its status as a 2-time incumbent, FedRAMP authorized status, and strategic investments in initiatives like CWMS 3.0, DaaS, and MobileAnchor [1] Financial Performance - WidePoint is expected to report a quarterly loss of $0.05 per share, reflecting a year-over-year decline of 25% [2] - Revenue projections for the upcoming quarter are $39.47 million, which represents a 14% increase compared to the same quarter last year [2] - The consensus EPS estimate for WidePoint has remained unchanged over the last 30 days, suggesting stability in earnings expectations [3] Industry Context - WidePoint is categorized under the Zacks Computer - Services industry, which includes other companies like PDF Solutions (PDFS) [3] - PDF Solutions has a consensus EPS estimate of $0.25 for its upcoming report, unchanged from the previous year, and also holds a Zacks Rank of 3 (Hold) [4] - PDF Solutions has seen a 25.5% return over the past month, indicating strong performance within the same industry [3]