We recently compiled a list of the Why These 15 Healthcare Stocks Are Skyrocketing So Far In 2025. In this article, we are going to take a look at where The Oncology Institute (NASDAQ:TOI) stands against the other healthcare stocks.
The healthcare sector is staging a comeback so far in 2025 after two years of underperformance. These stocks could get even hotter due to AI. The healthcare sector was a hot topic during the Stargate project announcement, so it is likely that there are going to be even more breakthroughs here as technology advances.
The S&P 500 Healthcare Index trailed the broader market considerably in the past few years. However, it has risen 7% year-to-date so far. There are many promising drugs awaiting approvals and trials right now. As such, healthcare EBITDA is projected to grow at a 7% CAGR, reaching $987 billion by 2028.
The sector is bouncing back from post-pandemic challenges. Nearly 60% of industry leaders expressed a favorable outlook for 2025. Thus, it is worth looking at the healthcare stocks spearheading the gains.
Methodology
For this article, I screened the top-performing healthcare stocks year-to-date. Stocks that I have covered recently will be excluded from this list.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds invest in? 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 radiologist monitoring the progress of radiation therapy on a patient.
The Oncology Institute (NASDAQ:TOI)
Number of Hedge Fund Holders In Q3 2024: 8
The Oncology Institute (NASDAQ:TOI) is an oncology group that provides cancer care services in the U.S.
The stock has surged so far in 2025 due to solid financials. Q3 2024 revenue grew 21.8% year-over-year to $99.9 million. This was driven by an 80% surge in Dispensary revenue from oral cancer drugs.
It also achieved its first quarterly cash surplus in 2024. Cash reserves thus increased by $1 million and SG&A expenses have been reduced by 6% year-over-year.
The company signed 13 new capitation contracts in 2024 and this included agreements that contributed over $50 million in annual revenue.
It has also deployed AI-driven treatment algorithms.
The consensus price target of $2.5 implies 169.4% upside.
TOI stock is up 203.4% year-to-date.
Overall TOI ranks 1st on our list of the healthcare stocks that are skyrocketing so far in 2025. While we acknowledge the potential of TOI 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 TOI 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 was originally published at Insider Monkey.
