Why agilon health, inc. (AGL) is Surging in 2025

We recently published a list of Why These 15 Healthcare Stocks Are Surging in 2025. In this article, we are going to take a look at where agilon health, inc. (NYSE:AGL) stands against other healthcare stocks that are surging in 2025.

After lagging behind the broader market in 2024, many healthcare stocks are making a comeback this year. Healthcare spending has been continuously soaring and is projected to do so in the coming years due to demographic tailwinds. The industry now accounts for a fifth of the U.S. economy, and it’s a good idea to have exposure to it.

Most executives now hold a favorable view of the industry’s prospects, a notable increase from 52% just a year ago. Moreover, it’s an industry that is more insulated from tariffs and macro risks.

Of course, the top gainers here are not defensive healthcare stocks, but it’s still worth looking into the winners here if you are chasing potential multibaggers.

Even during bear markets, there are pockets of the market that perform exceptionally well. For example, I identified 15 Energy Stocks that are Up the Most in 2025 in another article.

Methodology

For this article, I screened the best-performing healthcare stocks year-to-date.

I will also mention the number of hedge fund investors in these stocks. 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).

Why Agilon Health Inc (AGL) is Surging in 2025

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

agilon health, inc. (NYSE:AGL)

Number of Hedge Fund Holders In Q4 2024: 20

agilon health, inc. (NYSE:AGL) partners with independent primary care physicians to deliver value-based care for seniors. It uses a platform that integrates technology, capital, and network support to transform healthcare delivery.

The stock is up significantly so far in 2025 due to the company’s strong fourth quarter and full-year 2024 results, where revenue rose 44% to $1.52 billion and Medicare Advantage membership increased 36% to 527,000.

Management’s guidance for 2025 further boosted confidence, as they projected continued membership growth. The market has also responded to agilon health, inc. (NYSE:AGL)’s ability to scale its model across 30 communities and its resilient performance amid broader healthcare volatility. Investors have been attracted to the company’s capitation-based business model, which allows for more predictable revenue and aligns incentives for quality care, although some analysts caution about ongoing profitability challenges.

The consensus price target of $4.81 implies 23.69% upside.

agilon health, inc. (NYSE:AGL) stock is up 105.26% year-to-date.

Overall, AGL ranks 11th on our list of healthcare stocks that are surging in 2025. While we acknowledge the potential of AGL 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 time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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