Oppenheimer’s Favorite Stocks For Next 12 Months: Top 32 Stock Picks

10. Evolent Health, Inc. (NYSE:EVH)

Share Price Upside: 22%

Number of Hedge Fund Investors In Q2 2024: 29

Average Analyst Share Price Target: $40.15

Evolent Health, Inc. (NYSE:EVH) is a tertiary healthcare company that operates systems that allow medical professionals to conduct their daily activities. Some of its services offered include risk and plan management, benefits management, and reporting. It is one of the few players in the value based care market and operates unique platforms such as end of life care planning. With a growing population of seniors in America, this platform could offer Evolent Health, Inc. (NYSE:EVH) strong tailwinds for years to come. Additionally, its unique value proposition also makes the firm an attractive target for mergers, as was evidenced in 2024 when Evolent Health, Inc. (NYSE:EVH) ‘s shares soared by 17% when a Reuters report claimed that the firm was in talks for a potential private equity buyout. Oppenheimer believes that Evolent Health, Inc. (NYSE:EVH) “has an attractive growth proposition, driven by its ability to cross-sell new services, upsell its risk-based products to its large customers and add new evergreen contracts.”

Evolent Health, Inc. (NYSE:EVH)’s management shared details for its value creation efforts during the Q2 2024 earnings call:

“In short, we’re keeping our focus on the enduring theme of higher quality and lower cost, which is obviously has always enjoyed support by those on both sides of the aisle. Further, we believe our condition management model drives more of our value from patient navigation and provider engagement and further reduces any burdens on providers from the utilization management model. In fact, based on the examples we gave earlier and other data, we estimate that in oncology, over 80% of our value creation comes from action outside of traditional utilization management and we believe that percentage will go up in the time ahead.”