We recently shared a list of stocks that are expected to soar in 2025. Today, let’s focus on how Option Care Health (NASDAQ: OPCH) compares to these stocks.
Stock market chatter is on the rise, especially with tech innovation gaining traction. After a successful couple of years, some investors are talking about the confidence coming back, especially after the recent Stargate project announcement.
Small and mid-sized companies are catching investors’ eyes. As larger stocks reach high valuations, these smaller companies present exciting growth opportunities. That’s why more people are paying attention.
In the past, smaller stocks struggled with market corrections and rising interest rates. However, with inflation under control and potential rate cuts, the outlook for these mid-tier stocks has improved.
Here’s how we chose our picks: We looked at the top-performing stocks with market values between $5 billion and $20 billion. Stocks we covered recently are not included on this list.
We also track how many hedge funds invest in these stocks. Following hedge fund trends can help us make better investment decisions. In fact, our research indicates that mimicking the choices of top hedge funds can lead to higher returns. Since May 2014, our newsletter’s strategy has achieved a 275% return, significantly outperforming the market.
Option Care Health provides home and alternative site infusion treatments, addressing needs for conditions like heart failure and other serious diseases. Recently, the company announced strong preliminary results for 2024, with revenue around $5 billion and net income estimated between $208.5 million and $212.6 million. They also predict revenue could rise to between $5.2 billion and $5.4 billion in 2025.
In January, they introduced a $500 million stock repurchase program, completing the last $90 million from a previous plan. Some analysts have also responded positively, with Jefferies raising its price target to $35, citing improved management and fewer concerns over pricing for their Stelara drug.
The average analyst price target is now set at $30.8, suggesting a slight upside for the stock. So far, OPCH shares have climbed 32.62% this year, which is impressive.
Overall, OPCH ranks 6th on our list of promising stocks for 2025. While it shows solid potential, some believe AI stocks may offer even better returns in a shorter timeframe. If you’re curious about an AI stock that trades affordably, check out our report on the cheapest options available.
READ NEXT: Explore the top mid-cap stocks and smid-cap stocks that are making waves in 2025.
Disclosure: None. This information was originally published at Insider Monkey.
Source link
hedge fund, OPCH
