10 Best Small-Cap Stocks Ready To Explode

4. Evolent Health, Inc. (NYSE:EVH)

Analyst Upside Potential: 118.09%

Evolent Health, Inc. (NYSE:EVH) is a healthcare company that specializes in connecting care for individuals with complex medical conditions, such as cancer, cardiovascular diseases, and musculoskeletal issues. The company operates through three main business segments including, Medicaid, Medicare, and Commercial and Other. It generates revenue from the fees of the services it provides to healthcare providers and payers under various contracts.

The company is riding the tailwind from improving the macroeconomic environment and Federal Reserve rate cuts. During the third quarter of fiscal 2024, Evolent Health, Inc. (NYSE:EVH) announced that its revenue for the quarter improved 28% year-over-year to reach $740 million. Management also announced six new revenue agreements during the quarter, these agreements are expected to contribute over $200 million in incremental annualized revenue. Moreover, this was also a record number of agreements signed in a single quarter in the company’s history.

Its Performance Suite, which integrates clinical pathways, technology, and financial incentives to improve patient outcomes while controlling healthcare costs, was the major revenue driver. The Performance Suite improved 77.05% year-over-year due to a significant increase in product lives because of the growth of oncology and cardiology risk clients.

Evolent Health, Inc. (NYSE:EVH) ranks as the 4th best small-cap stock ready to explode as analysts’ 12-month median price target is pointing towards a 118.09% upside from the current levels.

Carillon Eagle Small Cap Growth Fund stated the following regarding Evolent Health, Inc. (NYSE:EVH) in its Q2 2024 investor letter:

“Evolent Health, Inc. (NYSE:EVH) is a leader in value-based care. It leverages a unique platform and AI technology to assist physicians in delivering efficient care plans for patients with cancer, cardiovascular disease, and complex musculoskeletal conditions, thereby reducing medical costs. Despite recent stock pressure due to higher than expected care levels depressing gross margins, the company’s contracts with managed care organizations ensure compensation adjustments, keeping Evolent on track for a healthy earnings before interest, taxes, depreciation, and amortization (EBITDA) run rate by the end of the year. Given its severe undervaluation, Evolent could potentially attract acquisition interest from private equity or managed care organizations.”