Among Top High-Risk, High-Reward Growth Stocks To Buy Now
The stock market is a dynamic environment that constantly presents opportunities for investors to seek substantial returns on their investments. One such avenue that investors often explore is investing in growth stocks. These stocks have historically been favored by investors looking for high returns, but they also come with a higher level of risk due to their volatility.
BrightSpring Health Services, Inc. (NASDAQ:BTSG) is one such growth stock that has caught the attention of investors and has been ranked among the top picks in a recent curated list of high-risk, high-reward growth stocks to buy now. Based in Louisville, Kentucky, BrightSpring Health Services is a provider of home and community-based healthcare services, with a focus on integrated care for complex patient populations.
In 2024, BrightSpring Health Services reported a revenue of $11.3 billion, marking a 28% increase from the previous year. The company’s Pharmacy Solutions segment played a significant role in driving this revenue growth, particularly through its Infusion and Specialty services. The successful launch of new limited distribution drugs (LDDs) has further heightened expectations for the company in the coming year.
With a beta of 2.15, BrightSpring Health Services exhibits significant price fluctuations, indicating a higher risk-reward profile. The company has seen a five-year sales growth of 20.12%, reflecting steady expansion in line with the overall healthcare industry trends. Additionally, the past five-year EPS growth of 60.10% signifies high profitability for investors, although the projected growth rate for the next five years is slightly more moderate at 22.12%.
Institutional backing for BrightSpring Health Services stands strong, with 29 hedge fund holders supporting the company, as per Insider Monkey’s Q4 2024 database. Analysts estimate a 33.76% 1-year upside potential for the company, further bolstering expectations of sustained demand for its services.
Overall, BrightSpring Health Services, Inc. ranks 5th on the list of high-risk, high-reward growth stocks to buy now. While the company shows promise as an investment, some AI stocks are believed to hold even greater potential for delivering higher returns in a shorter time frame. Investors looking for a promising AI stock trading at a lower earnings multiple may want to explore other options in the market.
In conclusion, growth stocks like BrightSpring Health Services offer investors the potential for significant returns, but they also come with inherent risks. It’s essential for investors to conduct thorough research and adopt a well-considered investment strategy when venturing into high-risk, high-reward opportunities like these. By staying informed and vigilant, investors can navigate the market conditions and make informed decisions about their investment portfolios.
