10 Oversold Healthcare Stocks To Invest In

3. Acadia Healthcare Company, Inc. (NASDAQ:ACHC)

Number of Hedge Fund Holders: 43

Acadia Healthcare Company, Inc. (NASDAQ:ACHC) is a top provider of behavioral health and addiction treatment services in the U.S. and Puerto Rico, operating 258 treatment facilities across 38 states. The company offers a wide range of services, including inpatient, residential, and outpatient care for individuals of all ages facing mental health disorders and addiction issues. The stock ranks third on our list of the best oversold stocks from the healthcare sector.

Acadia Healthcare Company, Inc. (NASDAQ:ACHC)’s recent acquisition of three Comprehensive Treatment Centers (CTCs) in North Carolina enhances its presence in the opioid addiction treatment market. Additionally, U.S. government reforms aimed at extending non-restrictive insurance coverage for addiction and behavioral healthcare could boost Acadia’s revenue starting January 2025. The company is also investing $100 million in technology to improve operational efficiency and patient care outcomes.

Acadia Healthcare Company, Inc. (NASDAQ:ACHC) reported strong financial performance in Q3 2024, with total revenue of $816 million, an 8.7% year-over-year increase. Same-facility revenue grew by 8.6%, while adjusted EBITDA rose 10.5% to $194.3 million, reflecting an adjusted EBITDA margin expansion of 40 basis points to 23.8%. The growth was driven by a 4.7% increase in same-facility patient days and a 3.6% rise in revenue per patient day, showcasing Acadia’s ability to attract more patients and improve pricing power. The behavioral health market presents a significant opportunity for the company, as more than one in five Americans live with a mental illness, and one in three with serious mental illness receives no treatment. With 40% fewer psychiatric beds per capita than comparable countries and an estimated need for 75,000 additional beds, Acadia Healthcare Company, Inc. (NASDAQ:ACHC) is well-positioned to address this demand, planning to invest billions of dollars and add over 2,000 beds in the next two years.

As tracked by the Insider Monkey database, 43 hedge fund holders held stakes in the company in Q2 2024, with Viking Global being the largest stakeholder with shares worth $234.7 million. The stock holds a Moderate Buy rating.