What Happened?
Shares of healthcare solutions company Evolent Health (NYSE: EVH) fell 13.9% in the morning session after the company reported disappointing second-quarter 2025 financial results, missing analyst expectations on both revenue and earnings, and lowering its full-year guidance. The healthcare solutions provider's revenue for the quarter fell 31.3% year-over-year to $444.3 million. Evolent also posted an adjusted loss of $0.10 per share, a significant miss compared to analyst forecasts of a profit and a sharp reversal from the earnings of $0.18 per share a year ago. Looking ahead, the company slashed its full-year revenue guidance by over 10% to approximately $1.87 billion and issued a third-quarter revenue forecast that also underwhelmed Wall Street.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Evolent Health? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Evolent Health’s shares are extremely volatile and have had 39 moves greater than 5% over the last year. But moves this big are rare even for Evolent Health and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 16 days ago when the stock gained 4.8% on the news that a new trade agreement between the United States and Japan spurred a broad market rally. The positive sentiment swept across markets after it was announced the U.S. and Japan had reached a new trade deal. The agreement included a 15% tariff on Japanese goods imported into the U.S. and a commitment from Japan to invest $550 billion in the U.S. and open its markets to American cars and agricultural products. This development boosted investor confidence and contributed to a widespread rally, lifting stocks across many sectors. The Dow Jones Industrial Average and the S&P 500 both posted gains, creating a favorable environment that likely benefited individual stocks.
Evolent Health is down 25.8% since the beginning of the year, and at $8.53 per share, it is trading 74.1% below its 52-week high of $32.97 from August 2024. Investors who bought $1,000 worth of Evolent Health’s shares 5 years ago would now be looking at an investment worth $647.80.
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