1. 1Life Healthcare, Inc. (NASDAQ:ONEM)
Tiger Global Management’s Stake Value: $217,341,000
Percentage of Tiger Global Management’s 13F Portfolio: 0.41%
Number of Hedge Fund Holders: 34
1Life Healthcare, Inc. (NASDAQ:ONEM), a San Francisco-based company offering in-person and online primary health care clinics, ranks first on our list of the best healthcare stocks to buy according to Tiger Cub Chase Coleman. Tiger Global Management increased its stake in 1Life Healthcare, Inc. (NASDAQ:ONEM) by 41% in Q3, holding a $217.34 million position in the company, which represents 0.41% of the fund’s total investments.
In the third quarter earnings results published on November 3 by 1Life Healthcare, Inc. (NASDAQ:ONEM), the company reported a loss per share of $0.34, missing estimates by $0.06. The revenue jumped 48.85% to $151.33 million, outperforming estimates by $5.61 million.
JPMorgan analyst Lisa Gill on December 21 lowered the price target on 1Life Healthcare, Inc. (NASDAQ:ONEM) to $28 from $41 and kept an Overweight rating on the shares.
A total of 34 hedge funds in the third quarter database of Insider Monkey were long 1Life Healthcare, Inc. (NASDAQ:ONEM), with total stakes amounting to $640.4 million. One of the biggest 1Life Healthcare, Inc. (NASDAQ:ONEM) stakeholders from Q3 is Lee Ainslie’s Maverick Capital, with 3.66 million shares worth $74.1 million.
Here is what Nomadic Value Partners has to say about 1Life Healthcare, Inc. (NASDAQ:ONEM) in its Q2 2021 investor letter:
“On June 7th One Medical (ONEM) announced an acquisition of Iora Health, a Medicare Advantage primary care business (MA PCP), for $2.1 billion of ONEM stock. The price implies a forward EV/sales valuation of 7x, a meaningful discount to comparables, Oak Street Health (OSH, portfolio holding) and Agilon Health (AGL), who had forward EV/sales multiples at time of announcement of 9x and 8.7x, respectively. However, after analyzing the provided information in combination with some additional industry scuttlebutt, I decided to sell our small position in the stock on June 18th. If you regularly read these quarterly letters, you are probably wondering why I would pass on this deal. In short, there are three reasons:First, Iora Health is not as good of a business as the category leader, Oak Street Health (OSH, current portfolio holding), which causes me to wonder if ONEM is buying a turnaround5. Second, the deal comes with significant integration risks, both tech and cultural, and the synergies presented by management are suspect6. Third, and probably the most important, is lost time as ONEM figures out these two issues over the next 2-3 years. Category leaders are focused on patient acquisition since they have already proven attractive unit economics at some initial scale. ONEM turning inward to plug holes instead of going all-in on patient acquisition could significantly stunt the base on which revenues can compound over the next few years.”
You can also take a look at 10 Artificial Intelligence Stocks in Cathie Wood’s Portfolio and Top 10 Stocks to Buy According to Legendary Value Investor Joel Greenblatt.
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