12 Stocks That Are About to Explode

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

Number of Hedge Fund Holders: 38

Analysts’ Upside Potential as of March 27: 64.6%

Evolent Health, Inc. (NYSE:EVH) provides technology-enabled clinical and administrative solutions designed to support value-based healthcare delivery and improve patient outcomes. The company offers a suite of integrated services, including population health management, care management, analytics, specialty care management, and administrative solutions to healthcare providers, payers, accountable care organizations, and government-sponsored health plans. Primarily operating in the US healthcare market, EVH focuses on enhancing clinical efficiency, reducing costs, and promoting quality care through data-driven insights, predictive modeling, and coordinated care strategies. The company ranked sixth on our recent list of 10 Stocks That Will Bounce Back According To Hedge Funds.

Evolent Health, Inc. (NYSE:EVH) reported revenue of $2.55 billion for 2024, representing a 30% growth versus 2023, with an adjusted EBITDA of $160.5 million landing at the low end of guidance due to elevated oncology expenses. For 2025, the company projects an organic growth of 15% to 18% after adjusting for one-time contract conversions and revenue recognition impacts. EVH has successfully renegotiated three Performance Suite contracts, securing $115 million in projected adjusted EBITDA improvement compared to the Q4 exit run rate. The company has implemented enhanced contractual protections and expects the oncology Performance Suite portfolio to return to profitability in 2025, with approximately 300 basis points of additional margin maturation available on the current book of business.

Evolent Health, Inc. (NYSE:EVH) is investing in automation and efficiency initiatives, expecting to achieve over $20 million in annualized direct cost improvements by the end of 2025, with a longer-term expectation of over $50 million annually once fully ramped up. Notably, EVH maintained a 100% logo renewal rate for top customers, representing more than 90% of revenue in 2024, including an important contract extension with Centene. The company’s 2025 guidance projects revenue of $2.06 billion to $2.11 billion and adjusted EBITDA between $135 million and $165 million, reflecting both growth opportunities and anticipated headwinds in the healthcare market. With at least 2 insiders buying more than $100,000 worth of stock in 2025, EVH is one of the stocks that are about to explode.