Over the last six months, agilon health’s shares have sunk to $2.30, producing a disappointing 5.3% loss - a stark contrast to the S&P 500’s 7.5% gain. This was partly driven by its softer quarterly results and might have investors contemplating their next move.

Given the weaker price action, is now the time to buy AGL? Find out in our full research report, it’s free.

Why Does agilon health Spark Debate?

Transforming how doctors care for seniors by shifting financial incentives from volume to outcomes, agilon health (NYSE: AGL) provides a platform that helps primary care physicians transition to value-based care models for Medicare patients through long-term partnerships and global capitation arrangements.

Two Things to Like:

1. Skyrocketing Revenue Shows Strong Momentum

A company’s long-term performance is an indicator of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last four years, agilon health grew its sales at an incredible 45.4% compounded annual growth rate. Its growth beat the average healthcare company and shows its offerings resonate with customers.

2. Customer Base Skyrockets, Fueling Growth Opportunities

Revenue growth can be broken down into the number of customers and the average spend per customer. Both are important because an increasing customer base leads to more upselling opportunities while the revenue per customer shows how successful a company was in executing its upselling strategy.

agilon health’s total customers punched in at 491,000 in the latest quarter, and over the last two years, their count averaged 34.7% year-on-year growth. This performance was fantastic, reflecting its ability to "land" new contracts and potentially "expand" them later - a powerful one-two punch for sales.

One Reason to be Careful:

Projected Revenue Growth Is Slim

Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite.

Over the next 12 months, sell-side analysts expect agilon health’s revenue to rise by 2.1%, a deceleration versus its 45.4% annualized growth for the past four years. This projection doesn't excite us and suggests its products and services will see some demand headwinds. At least the company is tracking well in other measures of financial health.

Final Judgment

agilon health has huge potential even though it has some open questions. After the recent drawdown, the stock trades at $2.30 per share (or a forward price-to-sales ratio of 0.2×). Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.