A number of healthcare stocks fell in the afternoon session after several negative developments weighed on the sector. Weakness in managed care providers was a significant factor, with companies like Elevance Health and Humana seeing declines due to an analyst downgrade and a lost lawsuit regarding Medicare bonus payments, respectively.
Investors can certainly boost their returns by concentrating on stocks trading between $1 and $10.
However, a disciplined approach is necessary because many of these businesses are speculative and lack the underlying fundamentals to support their prices.
Over the last six months, agilon health’s shares have sunk to $2.30, producing a disappointing 5.3% loss - a stark contrast to the S&P 500’s 7.5% gain. This was partly driven by its softer quarterly results and might have investors contemplating their next move.
As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the outpatient & specialty care industry, including agilon health (NYSE:AGL) and its peers.
Small-cap stocks in the Russell 2000 (^RUT) can be a goldmine for investors looking beyond the usual large-cap names.
But with less stability and fewer resources than their bigger counterparts, these companies face steeper challenges in scaling their businesses.
Growth is oxygen.
But when it evaporates, the consequences can be extreme - ask anyone who bought Cisco in the Dot-Com Bubble (Nvidia?) or newer investors who lived through the 2020 to 2022 COVID cycle.
Unprofitable companies can burn through cash quickly, leaving investors exposed if they fail to turn things around.
Without a clear path to profitability, these businesses risk running out of capital or relying on dilutive fundraising.
Healthcare services company Agilon Health (NYSE:AGL) reported Q1 CY2025 results topping the market’s revenue expectations, but sales fell by 4.5% year on year to $1.53 billion. The company expects next quarter’s revenue to be around $1.47 billion, close to analysts’ estimates. Its non-GAAP profit of $0.03 per share was $0.02 above analysts’ consensus estimates.
Shares of healthcare services company Agilon Health (NYSE:AGL) fell 24.9% in the afternoon session after the company reported weak first quarter 2025 results as new customer additions fell short.
Healthcare services company Agilon Health (NYSE:AGL) announced better-than-expected revenue in Q1 CY2025, but sales fell by 4.5% year on year to $1.53 billion. On the other hand, next quarter’s revenue guidance of $1.47 billion was less impressive, coming in 0.5% below analysts’ estimates. Its GAAP loss of $0 per share was in line with analysts’ consensus estimates.
Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at Encompass Health (NYSE:EHC) and its peers.
Looking for insights into the US markets one hour before the close of the markets on Thursday? Delve into the top gainers and losers of today's session and gain valuable market intelligence.
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at outpatient & specialty care stocks, starting with Select Medical (NYSE:SEM).
