We recently published a list of the 11 Best Performing Stocks So Far In 2025. In this article, we are going to take a look at where Agilon Health Inc. (NYSE:AGL) stands against the other best performing stocks so far in 2025.
On March 21, Jason Pride, Chief of Investment Strategy at Glenmede, and Stephen DeNichilo, Portfolio Manager at Federated Hermes, appeared on CNBC’s ‘Power Lunch’ to discuss the current market dynamics. Pride cautioned against overemphasizing the MAG7 tech stocks and noted that this market is one of the most concentrated in history, which is similar to the levels seen in 1999–2000 and the Roaring Twenties. He argued that this extreme concentration suggests that future market performance is more likely to come from areas outside these dominant stocks. Pride emphasized the importance of diversification in this environment. He advised investors to focus on the remaining stocks in the S&P 500 index beyond the MAG7. He highlighted small-cap stocks, international equities, and bonds as better opportunities for future returns. According to him, moving away from over-concentrated segments of the market is essential for achieving better long-term performance.
DeNichilo added his perspective by explaining what drives stock prices over time. He noted that for a stock to rise in value, someone must be willing to buy it at a higher price. With the MAG7 being some of the most widely owned stocks in history, he questioned who else is left to buy them. He pointed out that markets dislike uncertainty, and today’s environment is filled with it, ranging from tariffs and inflation to interest rate policies and unpredictable forecasts from big companies. This lack of clarity has created a self-imposed economic slowdown. DeNichilo shifted focus to small-cap stocks, which he described as significantly undervalued based on historical metrics. He suggested that if interest rates decline and market confidence improves over the next 6 to 12 months, small-cap stocks are likely to perform well. He argued that smaller companies often drive innovation due to their agility and ability to grow earnings faster than massive corporations like those in the MAG7.
Our Methodology
We used the Finviz stock screener to compile a list of all the best-performing stocks. We then picked the 11 stocks with the highest year-to-date gains, as of March 21. The stocks are ranked in ascending order of their year-to-date performance. We have also added the hedge fund sentiment for each stock which was sourced from Insider Monkey’s database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A doctor in scrubs interacting with a Medicare Advantage member in her home.
Agilon Health Inc. (NYSE:AGL)
Year-to-Date Performance as of March 21: 115.79%
Number of Hedge Fund Holders: 20
Agilon Health Inc. (NYSE:AGL) provides healthcare services for seniors in the US through primary care physicians. It utilizes a subscription-based model and manages the total healthcare needs of patients on a per-member and per-month basis.
In Q4 2024, the company’s Medicare Advantage (MA) membership reached 527,000, which was a 36% increase year-over-year. However, for 2025, the company is strategically reducing membership to a midpoint of 505,000, which will be a 4% decrease. This adjustment aims to balance risk and opportunities. In Q4, the company’s total revenue was $1.52 billion, which contributed to a full-year total of $6.06 billion. For 2025, revenue is projected to be $5.925 billion.
The company’s strategic adjustments to its MA segment include reducing Medicare Part D exposure to under 30% of membership, focusing on measured growth, and improving clinical and operational capabilities. The company is investing in clinical programs and aiming for 4+ star quality ratings. It has a focus on medication adherence and chronic disease management. These adjustments aim to navigate the challenging Medicare Advantage environment and drive long-term profitability.
Artisan Mid Cap Fund stated the following regarding Agilon Health, inc. (NYSE:AGL) in its Q4 2023 investor letter:
“We ended our investment campaigns in Agilon Health, inc. (NYSE:AGL) and BioNTech during the quarter. We initiated a GardenSM position in Agilon in early 2023 with a view that the company’s health care delivery model had the potential to provide both higher quality and lower cost care to seniors, which is a growing market due to an aging population. The company’s ability to scale while expanding margins was our biggest point of uncertainty, and it came to fruition as membership growth has tracked well but medical margins have struggled. After concluding that our probability of success has decreased, we decided to move on in favor of higher conviction ideas.”
Overall, AGL ranks 5th on our list of the best performing stocks so far in 2025. While we acknowledge the growth potential of AGL, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AGL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.