Shares of Montrose Environmental Group Inc. (NYSE: MEG) soared by over 5% on Tuesday, November 7th, despite the company reporting weaker-than-expected results for the third quarter of 2024.

The environmental services company posted an adjusted loss of $0.39 per share for the quarter ended September 30th, wider than the $0.09 per share loss that analysts had anticipated. Revenue also fell short of estimates, coming in at $178.69 million compared to the consensus forecast of $185.47 million.

Despite the earnings miss, investors appear to be focusing on the company's long-term growth prospects and attractive valuation. According to the Baron Discovery Fund, which holds a position in Montrose Environmental, the recent pullback in the stock due to concerns over the Supreme Court's Loper Bright Enterprises v. Raimondo case is "overblown." The fund remains optimistic about the company's potential in areas like cleaning up PFAS (forever chemicals) sites, and believes the stock is undervalued at its current levels.