Increased Bookings Reinforce Novanta’s (NOVT) Broadening Organic Momentum

Increased Bookings Reinforce Novanta’s (NOVT) Broadening Organic Momentum

Thu, August 6, 2026 at 3:56 PM GMT+3 3 min read

Conestoga Capital Advisors, an asset management company, released its second-quarter 2026 investor letter. A copy of the letter can be downloaded here. The letter reports a positive market shift towards Small Caps, with the Russell 2000 Index achieving its best first half since 1991 and the Russell 2000 Growth Index up 25.7% in Q2, fueled by AI enthusiasm and semiconductor stocks. However, market leadership was uneven, mirroring the Tech Bubble, with high-beta stocks outperforming while high-quality companies lagged, which impacted Conestoga's quality-focused strategies. Management expressed confidence in long-term outcomes, noting that speculative leadership won't last as monetary policy tightens and market breadth improves. The firm remains committed to high-quality growth businesses, expecting these to regain favor as leadership broadens. The Conestoga Small Cap Composite returned 14.32% net-of-fees in the second quarter, with 25.71% for the Russell 2000 Growth Index. Narrow Index leadership hurt the relative results, but it also hid Composite improvements. In addition, please check the Strategy's top five holdings to know its best picks in 2026.

In its Q2 2026 investor letter, Conestoga Capital Advisors highlighted Novanta Inc. (NASDAQ:NOVT) as a notable performance contributor. Novanta Inc. (NASDAQ:NOVT) is a technology solutions company that offers precision medicine, precision manufacturing, medical solutions, robotics and automation solutions, and advanced surgery solutions. On August 5, 2026, Novanta Inc. (NASDAQ:NOVT) closed at $153.12 per share, reflecting a market capitalization of $5.45 billion. Novanta Inc. (NASDAQ:NOVT) posted a one-month return of 0.96%, while its shares gained 34.63% over the past 52 weeks.

Conestoga Capital Advisors stated the following regarding Novanta Inc. (NASDAQ:NOVT) in its Q2 2026 investor letter:

"Novanta Inc. (NASDAQ:NOVT) provides precision technology solutions for medical and advanced industrial applications. The company reported improving demand across robotics, medical technologies, semiconductor equipment, and AI-related applications, prompting management to raise its revenue outlook. Bookings increased 37% year-over-year, reinforcing confidence that organic growth is broadening across the portfolio."

Novanta Inc. (NASDAQ:NOVT) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 33 hedge fund portfolios held Novanta Inc. (NASDAQ:NOVT) at the end of the first quarter, compared to 38 in the previous quarter. While we acknowledge the potential of Novanta Inc. (NASDAQ:NOVT) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on thebest short-term AI stock.

In addition, please check out our hedge fund investor letters Q2 2026 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.