Why Agilon Health Inc (AGL) Is Skyrocketing So Far In 2025

We recently compiled a list of the Why These 15 Healthcare Stocks Are Skyrocketing 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 healthcare stocks.

The healthcare sector is staging a comeback so far in 2025 after two years of underperformance. These stocks could get even hotter due to AI. The healthcare sector was a hot topic during the Stargate project announcement, so it is likely that there are going to be even more breakthroughs here as technology advances.

The S&P 500 Healthcare Index trailed the broader market considerably in the past few years. However, it has risen 7% year-to-date so far. There are many promising drugs awaiting approvals and trials right now. As such, healthcare EBITDA is projected to grow at a 7% CAGR, reaching $987 billion by 2028.

The sector is bouncing back from post-pandemic challenges. Nearly 60% of industry leaders expressed a favorable outlook for 2025. Thus, it is worth looking at the healthcare stocks spearheading the gains.

Methodology

For this article, I screened the top-performing healthcare stocks year-to-date. Stocks that I have covered recently will be excluded from this list.

I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds invest in? 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 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).

A doctor in scrubs interacting with a Medicare Advantage member in her home.

Agilon Health Inc (NYSE:AGL)

Number of Hedge Fund Holders In Q3 2024: 24

Agilon Health Inc (NYSE:AGL) operates a value-based healthcare model that focuses on Medicare patients.

The stock has surged significantly so far in 2025 after a strategic restructuring. Agilon Health has exited two unprofitable partnerships and renegotiated payer contracts to focus on higher-margin markets.

It has also reduced its 2025 geography entry costs significantly.

Plus, Medicare Advantage membership grew 37% year-over-year, and it secured improved reimbursement rates for 40% of renewals this year.

The consensus price target of $4.03 implies 18.66% upside.

AGL stock is up 80.53% year-to-date.


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