This Healthcare Stock Is Up 1,000%, Outpacing Nvidia, Tesla, and Apple Combined

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Generación de resúmenes en curso

Technology stocks get a lot of hype these days. That’s particularly true for those involved in generative artificial intelligence. However, there have been outstanding performers in other sectors this year.

For instance, **Oncology Institute **(TOI +24.43%), a provider of oncology care, has seen its stock price soar 1,130% through Oct. 16. That’s outpaced popular stocks, such as **Nvidia **and Tesla, which gained 35.4% and 6.2%, respectively, while Apple’s lost 1.2%.

It’s time to take a step back to explore Oncology Institute’s business.

Image source: Getty Images.

Understanding the company

Oncology Institute, started in 2007, provides a range of cancer care. This includes physician care, infusions, and radiation. It also provides pharmacy services and clinical trials.

It aims to provide these services under value-based contracts through which Oncology Institute receives a fee. This arrangement offers savings to insurance companies and patients while putting the onus on Oncology Institute to provide high-quality healthcare in a cost-efficient manner.

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NASDAQ: TOI

Oncology Institute

Today’s Change

(24.43%) $0.64

Current Price

$3.26

Key Data Points

Market Cap

$258M

Day’s Range

$2.93 - $3.38

52wk Range

$0.63 - $4.88

Volume

69K

Avg Vol

1.7M

Gross Margin

13.29%

The company operates in 16 markets across five states, so it remains small. Nonetheless, it has been growing revenue rapidly. Oncology Institute’s second-quarter top line increased 21.5% to $119.8 million.

However, the company continues to lose money. It reported an operating loss under generally accepted accounting principles (GAAP) of $11.2 million, although that’s narrower than last year’s $16.4 million loss.

Future prospects

Companies that make the U.S. healthcare system more cost-effective and produce better outcomes should be rewarded with high revenue and profit growth. Still, it’s unclear when or if Oncology Institute will achieve profitability. With the stock soaring this year, it may have gotten ahead of itself.

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