11 Best Fundamentally Strong Penny Stocks to Buy Now

6. DocGo Inc. (NASDAQ:DCGO)

Number of Hedge Fund Holders: 17

DocGo Inc. (NASDAQ:DCGO) is a technology-driven mobile health services provider offering on-demand medical care outside traditional clinical settings. The company delivers services such as urgent care, chronic condition management, preventative care, and medical transportation through a network of mobile clinicians supported by a proprietary digital platform. DCGO contracts with healthcare systems, governments, and enterprise clients to provide scalable healthcare delivery solutions, often at patients’ homes or workplaces. Its logistics platform enables real-time scheduling, routing, and documentation, enhancing operational efficiency.

DocGo Inc. (NASDAQ:DCGO)’s 2024 financial results show a company in transition, with a shift away from migrant-related programs toward its core mobile health services. While full-year revenue slightly declined to $616.6 million from $624.2 million in 2023, the company improved its profitability metrics, with adjusted gross margin rising to 34.6% and adjusted EBITDA reaching $60.3 million. However, the fourth quarter was notably impacted by an accelerated wind-down of migrant-related contracts, leading to a $7.6 million net loss and a steep drop in adjusted EBITDA to $1.1 million. DCGO attributed these declines to unexpected program closures and increased investment in its payer-focused verticals, including higher staffing and operational costs to support future growth.

Looking ahead, DocGo Inc. (NASDAQ:DCGO) is leaning into strategic expansion, particularly through its care gap closure programs, which now serve over 700,000 patients – a massive leap from 2,000 just a year prior. The company has secured multiple new contracts with hospitals and government agencies and made technology and personnel investments to support scaling. While 2025 revenue guidance remains unchanged at $410–$450 million, EBITDA margin expectations were revised downward from 8–10% to approximately 5% due to ongoing investment. Despite short-term margin compression, management is confident these strategic moves will drive long-term, sustainable growth and a transition to higher-quality recurring revenue streams. With 17 hedge funds owning the stock, DCGO is one of the best fundamental stocks to buy now.