FPS added to Conestoga Capital’s SMid Cap Composite in Q2 2026

Forgent Power Solutions (FPS) has been singled out by asset manager Conestoga Capital Advisors as a smart pick for long-term growth, adding the company to its SMid Cap Composite in the second quarter of 2026. On August 5, FPS closed at $38.49 a share, giving it a market value of $11.7 billion, even though its stock slipped 15% over the prior month. The company makes heavy-duty electrical kit for data centers, power grids, and big factories, exactly the gear that’s in demand as AI and energy grids expand.

Conestoga’s bullish call comes at a time when small-company stocks are staging a rare rebound. The Russell 2000 has just logged its strongest first half since 1991, and the Russell 2000 Growth Index jumped 25.7% in Q2 thanks to a surge in AI and semiconductor names. Analysts warn, though, that much of the rally has been driven by high-risk, high-beta bets rather than steady quality earners. Conestoga expects that imbalance to fade as central banks keep rates higher for longer, pushing investors back toward reliable growth businesses with strong cash flow.

FPS fits that bill, according to Conestoga. The firm highlights the company’s rising market share, widening profit margins, and record order backlog as proof that it can outgrow its end markets even while it ramps up new factories. The pitch is simple: as data centers multiply and utilities upgrade grids, demand for high-end electrical distribution gear should stay strong. FPS also stands to benefit from the broader electrification trend, from electric vehicles to renewable energy hook-ups.

What happens next depends on whether the market rotation really does favor quality over hype. FPS has attracted just 76 hedge funds so far, a modest count compared with the most popular AI names, and its recent price dip suggests investors haven’t fully priced in the bull case. If the company can convert its backlog into cash and keep margins climbing, the stock could reward patient shareholders. For now, Conestoga is betting that FPS is one of the better ways to play the infrastructure boom without riding the rollercoaster of unproven AI start-ups.