We recently compiled a list of the 10 Hot New Stocks to Buy Now. In this article, we are going to take a look at where BrightSpring Health Services, Inc. (NASDAQ:BTSG) stands against the other hot new stocks.
According to a report published by EY on January 15, the IPO activity in the United States remained strong in 2024 and is expected to continue at an accelerated pace in 2025. The market made a significant recovery last year. This recovery was both in terms of the number of IPOs and the proceeds raised when compared to 2023. While the number of IPOs increased 38% year-over-year, the proceeds rose 48% during the same time. The report further highlighted that around 20 deals raised more than $500 million, whereas, seven deals stood out by topping $1 billion. During the fourth quarter of 2024 alone, the proceeds almost doubled year-over-year, driven by a single deal that raised $1.7 billion, around 30% of the overall proceeds from Q4 2023.
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During the last year, 176 IPO deals led the total proceeds for the year to $33 billion. The healthcare technology and media and telecommunication sectors were the key leaders for the US IPO activity as these sectors accounted for around 61% and 49% of the overall proceeds. Moreover, companies with advancements in artificial intelligence technology were found to be significant attention gainers among investors. Looking ahead, the report predicts continued growth for the IPO market, with substantial success for companies with proven AI-driven results. In addition, cross-border IPOs also came under the spotlight as they accounted for around 64% of the deals conducted in Q4 2024, with two non-US companies making it to the top 10 largest deals of 2024.
Our Methodology
To curate the list of 10 hot new stocks to buy now we conducted our initial research using the Finviz stock screener. We searched for companies that went public in the last 2 years and then sorted the list by their past 6 months performance. Next, we cross-checked the past 6 months’ performance from Google and the analyst upside potential for each stock sourced from CNN. Lastly, we ranked the stocks based on the number of hedge fund holders as per Insider Monkey’s Q4 2024 database. Please note that the data was collected on February 18, 2025.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A healthcare professional providing physical therapy to an elderly patient.
BrightSpring Health Services, Inc. (NASDAQ:BTSG)
6-Months Performance: 85.49%
Analyst Upside Potential: 12.28%
Number of Hedge Fund Holders: 29
BrightSpring Health Services, Inc. (NASDAQ:BTSG) provides health care services to people in their homes and communities. The company focuses on offering both pharmacy and healthcare provider services for individuals with complex health needs. It operates through two main segments: pharmacy solutions and provider services across all 50 states in the United States.
On January 29, Whit Mayo analyst at Leerink Partners reiterated a Buy rating on the stock while maintaining a price target of $26.5. The analyst noted that BrightSpring Health Services, Inc. (NASDAQ:BTSG) demonstrates strong organic growth, especially in specialty areas like oncology, projecting top-line growth above 20%. Moreover, Mayo suggests that the sale of the community living segment has simplified the business, reduced risk, and sharpened focus on higher-margin, faster-growing segments.
During the fiscal third quarter of 2024, the company’s Pharmacy Solutions segment generated $2.3 billion in revenue, up 35% year-over-year. Management attributed growth to strong prescription volumes as the company processed 10.9 million prescriptions during the quarter, up 15% during the same time. It is one of the hot new stocks to buy now.
Overall BTSG ranks 5th on our list of the hot new stocks to buy now. While we acknowledge the potential of BTSG as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BTSG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.