10 Best Debt-Free Penny Stocks to Buy Now

4. Agilon Health Inc. (NYSE:AGL)

Market Cap as of September 13: $1.36 Billion

Enterprise Value: $1.01 Billion

Hedge Funds Holding Stakes as of Q2 2024: 17

Agilon Health Inc. (NYSE:AGL) is a healthcare company that delivers medical services to senior citizens by working with family doctors across the United States. It offers a service that oversees all patients’ medical requirements by charging a fee similar to a subscription-based on the number of members and the monthly cost.

The company delivered solid second-quarter results that affirm underlying growth amid a challenging economic environment. Revenue in the quarter was up 39% to $1.5 billion as Medicare Advantage membership grew by 385 to 513,000. The company ended the quarter with a net loss of $31 million and a debt holding of $36 million.

The second quarter’s results aligned with the guidance, as Agilon Health Inc. (NYSE:AGL) maintained a medical margin and adjusted EBITDA guidance for the full year. Additionally, Agilon is progressing in implementing its performance action plan, which should accelerate profitability while strengthening the value proposition to physicians and payers.

Despite struggling to profit, Agilon Health Inc. (NYSE:AGL) has demonstrated remarkable growth figures. The firm’s 3-year Revenue Growth Rate per Share is at 49.40%, far exceeding the average of 92.57% among its rivals, which underlines why it is one of the best debt-free penny stocks to buy now.

As of June 30, 17 hedge funds held long positions in the company, with Rock Springs Capital Management holding the largest stake valued at $58.21 million.

Here is what Artisan Mid Cap Fund said about Agilon Health, inc. (NYSE:AGL) in its fourth quarter 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.”