Healthcare services company Agilon Health (NYSE:AGL) will be reporting earnings tomorrow after market close. Here’s what to look for.

agilon health missed analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $1.45 billion, up 27.6% year on year. It was a softer quarter for the company, with full-year revenue guidance missing analysts’ expectations and a significant miss of analysts’ EPS estimates. It added 12,200 customers to reach a total of 525,000.

Is agilon health a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting agilon health’s revenue to grow 43.9% year on year to $1.52 billion, slowing from the 71.8% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.13 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.

Looking at agilon health’s peers in the outpatient & specialty care segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Encompass Health delivered year-on-year revenue growth of 12.7%, beating analysts’ expectations by 1.8%, and Select Medical reported revenues up 7.8%, falling short of estimates by 8.9%. Encompass Health traded up 1.3% following the results while Select Medical was down 7.2%.

Read our full analysis of Encompass Health’s results here and Select Medical’s results here.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the outpatient & specialty care stocks have shown solid performance, the group has generally underperformed, with share prices down 5.3% on average over the last month. agilon health is up 4.1% during the same time and is heading into earnings with an average analyst price target of $3.07 (compared to the current share price of $3.53).

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.