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 The Oncology Institute (NASDAQ:TOI) 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 radiologist monitoring the progress of radiation therapy on a patient.
The Oncology Institute (NASDAQ:TOI)
Number of Hedge Fund Holders In Q3 2024: 8
The Oncology Institute (NASDAQ:TOI) is an oncology group that provides cancer care services in the U.S.
The stock has surged so far in 2025 due to solid financials. Q3 2024 revenue grew 21.8% year-over-year to $99.9 million. This was driven by an 80% surge in Dispensary revenue from oral cancer drugs.
It also achieved its first quarterly cash surplus in 2024. Cash reserves thus increased by $1 million and SG&A expenses have been reduced by 6% year-over-year.
The company signed 13 new capitation contracts in 2024 and this included agreements that contributed over $50 million in annual revenue.
It has also deployed AI-driven treatment algorithms.
The consensus price target of $2.5 implies 169.4% upside.
TOI stock is up 203.4% year-to-date.
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Disclosure: None. This article was originally published at Insider Monkey.
