10 Best Fast-Growing Penny Stocks to Buy Now

6. Agilon Health Inc. (NYSE:AGL)

3-Year Revenue CAGR: 50.60%

Year-over-Year Revenue CAGR: 65.62%

Share Price as of September 5: $4.17

Number of Hedge Fund Holders: 17

Agilon Health Inc. (NYSE:AGL) provides healthcare services for seniors through primary care physicians across different US communities, transforming healthcare for older people by focusing on the entire health of patients.

The company had 4 main goals in 2024: improving relationships with insurance companies, getting more primary care doctors involved, making data-driven decisions, and just generally working more efficiently. It has made substantial progress on the first plan, and insurance companies value their relationships because of the doctors involved. There are ongoing talks about adjusting the contracts to reflect higher costs and other issues, including ending some wasteful contracts.

As a result of focused planning, the company was able to record a 39% year-over-year improvement in revenue for Q2 2024. This growth was driven by the class of primary care physicians of 2024 and solid organic growth in existing classes. Medical services expenses increased to $1.37 billion due to the expansion of the 2024 class. The program, ACO REACH, which provides coordinated care to Medicare beneficiaries, added memberships slightly ahead of expectations at 132,000.

As a result of strong membership growth, the full-year membership guidance is now a midpoint of 519,000 members, but the full-year revenue guidance is slightly lowered due to a series of factors, including retroactive contract terminations. Investors are still interested in the company. As of June 30, 17 hedge funds held long positions in the company with the highest stake at $58,206,000 by Rock Springs Capital Management.

Artisan Mid Cap Fund stated the following regarding 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.”