We recently compiled a list of the 12 Best Growth Stocks Under $25 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 growth stocks.
AI is the Most Defining Theme of 2025, Says Expert
Most experts agree that the AI wave is not over yet. On January 8, Wendy Sheehan Donnell, Editor-in-Chief at PCMag, joined Yahoo Finance from CES 2025 to share her take on trending innovations and the increasing role of artificial intelligence in revolutionizing industries.
Donnell unveiled some of the groundbreaking innovations spearheaded by companies from across the globe and emphasized that “AI is the prevailing theme” across all these new products and services. She highlighted the incidence of AI-powered home devices such as smart microwaves and fridges to help people live smarter and tech-immersed lives. She also shed light on the growing role of AI in healthcare and biotechnology, which will contribute to the well-being of people.
A Glance at the Tech Sector in 2025
The market close on Tuesday reiterated a similar pattern where tech stocks continued to shine, however, some analysts expect the market to broaden over the course of 2025. On January 7, Joe Mazzola, head trading and derivatives strategist at Charles Schwab, joined Yahoo Finance, to discuss his market thesis for the tech sector especially.
Mazzola suggested that the market breadth was of importance in the earnings season, and pointed towards the strengthening of the US dollar and how it may impact the earnings of tech names. He added that the market needs the other “493 names” in the S&P 500 to catch up. Mazolla also emphasized that while 2025 can be a win for Big Tech like 2024, a broadening would help the overall market immensely in terms of earnings.
He added that the financials sector would supposedly catalyze the broadening of the market, because of favorable economic and market conditions. He then discussed the tailwinds for financials and how the same factors serve as headwinds to Big Tech, emphasizing that the bullishness on tech has been slower than it was at the end of 2024.
Our Methodology
We used Finviz to look for companies operating in growth sectors such as technology, financials (fintech), biotech, and communication services. We only focused on companies with a market cap of at least $2 billion and that gained more than 50% over the past 2 quarters. We then examined the hedge fund sentiment surrounding 25 stocks and picked the 12 stocks that were the most widely held by hedge funds.
Why are we interested in the stocks that hedge funds pile into? 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 smiling healthcare professional, treating a patient with the PLEX platform.
BrightSpring Health Services, Inc. (NASDAQ:BTSG)
Number of Hedge Fund Holders: 21
Share Price as of January 8, 2024: $17.34
BrightSpring Health Services, Inc. (NASDAQ:BTSG) is a healthcare company that provides a wide variety of home and community-based health services to people. The company offers electronic health record solutions, data analytics and reporting, smart home monitoring, telehealth services, and care management to patients when they need it. In 2023 alone, the company filled 37 million prescriptions for polypharmacy patients and has over 900 locations across all its service lines.
BrightSpring Health Services, Inc. (NASDAQ:BTSG) attributes its position to its expansion strategy comprised of acquisitions and mergers. In the past few months, the company has formed several partners for the development of new drugs and specialist pharmacies. In September, the company announced an agreement to acquire Haven Hospice which delivers comprehensive hospice care across 18 counties in Florida. The acquisition will allow BTSG to offer advanced care planning and hospice services in Florida.
The company’s position in the industry is evident from the fact that it offers solutions across all 50 states in the United States to more than 400,000 customers, clients, and patients every day. However, with such a mature position, the company is still committed to expanding, and this is one of the primary reasons for it to be on our list.
Overall BTSG ranks 5th on our list of the best growth stocks under $25 to buy now. While we acknowledge the potential of BTSG as an investment, our conviction lies in the belief that certain 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.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article is originally published at Insider Monkey.
