Shares of healthcare services provider AdaptHealth Corp. (NASDAQ:AHCO) fell 16.4% in the afternoon session after its fourth-quarter 2025 report revealed a significant loss that overshadowed a revenue beat. While total revenue of $846.3 million surpassed analyst expectations, investors focused on substantial profitability challenges. The company posted a GAAP loss of $0.76 per share, which starkly missed Wall Street's consensus estimate for a $0.35 profit and reversed the $0.37 profit per share reported in the same quarter of the previous year. Highlighting the pressure on profits, the operating margin contracted to negative 8.7% from a positive 11.4% a year ago. Additionally, adjusted EBITDA, a measure of operational profitability, came in at $163.1 million, missing analyst forecasts by over 14%.
Healthcare services provider AdaptHealth Corp. (NASDAQ:AHCO) reported Q4 CY2025 results beating Wall Street’s revenue expectations, but sales fell by 1.2% year on year to $846.3 million. The company’s full-year revenue guidance of $3.48 billion at the midpoint came in 1% above analysts’ estimates. Its GAAP loss of $0.76 per share was significantly below analysts’ consensus estimates.
Personal health and wellness is one of the many secular tailwinds for healthcare companies. Shareholders who bet on the industry have been rewarded lately
as healthcare stocks have returned 18.6% over the past six months, topping the S&P 500 by 10.2 percentage points.
Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings.
However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats.
Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
Small-cap stocks in the Russell 2000 (^RUT) can be a goldmine for investors looking beyond the usual large-cap names.
But with less stability and fewer resources than their bigger counterparts, these companies face steeper challenges in scaling their businesses.
The Russell 2000 (^RUT) is packed with potential breakout stocks, thanks to its focus on smaller companies with high growth potential.
However, smaller size also means these businesses often lack the resilience and financial flexibility of large-cap firms, making careful selection crucial.
Value stocks typically trade at discounts to the broader market, offering patient investors the opportunity to buy businesses when they’re out of favor.
The key risk, however, is that these stocks are usually cheap for a reason – five cents for a piece of fruit may seem like a great deal until you find out it’s rotten.
Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at AdaptHealth (NASDAQ:AHCO) and its peers.
AdaptHealth has had an impressive run over the past six months as its shares have beaten the S&P 500 by 12.6%. The stock now trades at $10.46, marking a 26% gain. This was partly due to its solid quarterly results, and the run-up might have investors contemplating their next move.
The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%.
But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.
Generating cash is essential for any business, but not all cash-rich companies are great investments.
Some produce plenty of cash but fail to allocate it effectively, leading to missed opportunities.
Stocks under $10 pique our interest because they have room to grow (as well as the most affordable option contract premiums).
That doesn’t mean they’re bargains though, and we urge investors to be careful as many have risky business models.
A number of stocks jumped in the afternoon session after comments from a key Federal Reserve official bolstered hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.
Personal health and wellness is one of the many secular tailwinds for healthcare companies. But financial performance has lagged recently as players offloaded surplus COVID inventories in 2023 and 2024, a headwind for overall demand.
The result? Over the past six months, the industry’s 11.6% return has trailed the S&P 500 by 4.7 percentage points.
The low valuation multiples for value stocks provide a margin of safety that growth stocks rarely offer.
However, the challenge lies in determining whether these cheap assets are genuinely undervalued or simply on sale due to their potentially deteriorating business models.
Great things are happening to the stocks in this article.
They’re all outperforming the market over the last month because of positive catalysts such as a new product line, constructive news flow, or even a loyal Reddit fanbase.
AdaptHealth (AHCO) Q3 2025 earnings beat revenue estimates but missed on EPS. The stock rose as investors focused on the revenue beat and strong operational progress.
Healthcare services provider AdaptHealth Corp. (NASDAQ:AHCO) reported Q3 CY2025 results topping the market’s revenue expectations, with sales up 1.8% year on year to $820.3 million. The company expects the full year’s revenue to be around $3.22 billion, close to analysts’ estimates. Its GAAP profit of $0.16 per share was 30.4% below analysts’ consensus estimates.
The Russell 2000 (^RUT) is packed with potential breakout stocks, thanks to its focus on smaller companies with high growth potential.
However, smaller size also means these businesses often lack the resilience and financial flexibility of large-cap firms, making careful selection crucial.
