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 agilon health, inc. (NYSE:AGL) 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 doctor in scrubs interacting with a Medicare Advantage member in her home.
agilon health, inc. (NYSE:AGL)
YTD Performance: 75%
Agilon Health (NYSE:AGL) is a healthcare outfit that teams up with local primary-care doctors. It helps those doctors serve Medicare Advantage members, and it tweaks the business side so doctors can focus on patients instead of tangled fee-for-service billing. It might sound fancy, but the core idea is straightforward. Its biggest source of revenue is medical services for Medicare Advantage members, and that line makes up nearly all the money the company pulls in. There’s a smaller chunk that comes from other sources, but the Medicare Advantage business is where the real cash is.
Total revenue hit about $1.45 billion in Q3, and that marked a 28% jump from the previous year. Membership for Medicare Advantage grew 37% to 525,000 members, so they’ve been gaining ground on that front. However, they posted a net loss of $118 million for the quarter, which was worse than the $31 million net loss they reported in the same quarter last year. That’s not ideal. You can blame a few things for this loss, including higher medical costs. I’ll admit I’m not thrilled about negative nets — even growth stories need to show they can turn a profit down the road.
They’ve still been one of the hotter names in healthcare. Part of the reason might be the rising number of baby boomers in Medicare Advantage plans, plus the way this company positions itself as a unique partner for doctors. They’re riding that wave of demand for better-managed care and pushing that message of “we’ll help doctors help patients.” Investors tend to like high-growth membership stories, although the net losses can be a little unsettling.
I see them growing in new markets and adding members who bring recurring revenues, so that’s likely why it’s up so much in the stock market this year. Investors love that top-line growth. The negative margins can be fixed if they can control costs and keep membership rolling in. Its recent membership surge looks promising, but the losses will probably keep some people cautious. If they show that they can fix the profitability issue, I predict more progress. They’re gambling big on the long-term potential of a fast-growing senior population, and that’s a story some people will buy into for a good while.
Overall AGL ranks 6th on our list of the hottest smid-cap stocks so far in 2025. While we acknowledge the potential of AGL 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 AGL 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.