We recently compiled a list of the 10 Hottest Smid-Cap Stocks So Far In 2025. In this article, we are going to take a look at where Accolade, Inc. (NASDAQ:ACCD) stands against the other smid-cap stocks.
As the name suggests, smid-cap stocks have a valuation between $200 million and $20 billion. The definition is pretty flexible, but I’ll be working with the broadest one. Most stocks on the market fall into this category, so I think it is a good way to check the general pulse of the broader economy and look into some up-and-coming companies that may one day be the large caps of tomorrow.
We will be taking a look at some of them in this article by looking through stocks within the aforementioned market cap, sorted by their year-to-date gains so far in 2025. Do note that OTC stocks will not be included in this list.
You should keep in mind that while some of these stocks could be good buys, there is also a significant downside risk to stocks that have gained a lot recently.
A webinar between a physician and a group of healthcare professionals discussing best practices.
Accolade, Inc. (NASDAQ:ACCD)
YTD Performance: 101.2%
Accolade (NASDAQ:ACCD) is in the business of personalized healthcare solutions. The company makes most of its revenue from these personalized care and navigation products, which let plan sponsors (like large employers and some health plans) offer a single place for members to figure out their healthcare options, talk to clinicians, and get referrals. That is the big money-maker in their lineup, although they also offer telehealth visits and medical opinion services for various conditions.
Recent updates have drawn plenty of attention. Accolade reported second-quarter 2025 revenue of around $106.4 million, which was a jump of almost 10% year-over-year and slightly above analysts’ estimates. It still posted a net loss of about $23.9 million, but that was a narrower loss than in past quarters. Company leadership says they are on track to reach their first full year of adjusted EBITDA profitability plus positive cash flow in fiscal year 2025, which excited investors. Meanwhile, management reaffirmed its guidance for the rest of the fiscal year, another reason the market has taken a liking to the stock.
There’s also chatter about a potential acquisition by Transcarent. Sources say the two sides reached a deal valued at hundreds of millions, although the exact timing and final terms are not set in stone. In my opinion, the combination of beaten estimates, narrower losses, and talk of a possible acquisition has driven the stock higher this year. Then again, it helps that the company has been trying to control costs and pivot toward the black. A lot can still happen, but Accolade appears to be heading in a positive direction and proving that personalized healthcare might be a big deal in the industry.
Overall ACCD ranks 2nd on our list of the hottest smid-cap stocks so far in 2025. While we acknowledge the potential of ACCD as an investment, our conviction lies in the belief that some 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 ACCD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 10 Hottest Mid-Cap Stocks So Far in 2025 and 10 Hottest Large-Cap Stocks So Far in 2025
Disclosure: None. This article was originally published at Insider Monkey.
Hedge Fund Resource Center