Here’s Why Option Care Health (OPCH) Surged in Q1

Loomis Sayles, an investment management company, released its “Small Cap Value Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The first quarter of 2025 saw negative returns for US equity markets, with large-cap indices outperforming small caps. Value stocks were stronger than growth stocks, driven by strong performance in financials and real estate, while growth sectors struggled. In the first quarter, the fund returned 0.16%, outperforming the Russell 2000 Value Index’s -1.06% return. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Loomis Sayles Small Cap Value Fund highlighted stocks such as Option Care Health, Inc. (NASDAQ:OPCH). Option Care Health, Inc. (NASDAQ:OPCH) provides home and alternate site infusion services. The one-month return of Option Care Health, Inc. (NASDAQ:OPCH) was -2.46%, and its shares gained 13.54% of their value over the last 52 weeks. On June 11, 2025, Option Care Health, Inc. (NASDAQ:OPCH) stock closed at $31.69 per share, with a market capitalization of $5.189 billion.

Loomis Sayles Small Cap Value Fund stated the following regarding Option Care Health, Inc. (NASDAQ:OPCH) in its Q1 2025 investor letter:

“Option Care Health, Inc. (NASDAQ:OPCH is a provider of infusion services in both the home and outpatient facilities for various chronic and acute therapies. In addition to favorable demographics and site of care trends, the company benefits from being the consolidating player in a fragmented industry that has yielded heightened negotiating power with health insurers and scaled procurement with manufacturers. In late 2024 the share price declined due to an unexpected strategic decision by a pharmaceutical supplier to significantly reduce the price and discount available to Option Care on a meaningful product. The issue resulted in a reduction of 2025 earnings estimates and introduced uncertainty regarding the scale and scope of the pricing change. However, in early 2025 the company provided updated guidance on the financial impact of the relationship. The shares rallied on the news, which was significantly better than the worst-case scenario as the company should remain on track to deliver their long-term annual growth targets.”

Why Option Care Health, Inc. (OPCH) Went Down On Tuesday

A home infusion nurse in full PPE gown delivering treatments to a patient in their own home.

Option Care Health, Inc. (NASDAQ:OPCH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held Option Care Health, Inc. (NASDAQ:OPCH) at the end of the first quarter, which was 40 in the previous quarter. While we acknowledge the potential of Option Care Health, Inc. (NASDAQ:OPCH) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Option Care Health, Inc. (NASDAQ:OPCH) and shared the list of best performing healthcare stocks to buy. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.