A Mysterious Stock Has Rallied Over 950% This Year. Here's 1 Key Reason Why Investors Are Turning Bullish

Check out The Oncology Institute (NASDAQ: TOI). Over 2025 to date (as of Nov. 20), it has skyrocketed a whopping $950%. Better still, over the past 12 months, it's up an incredible 1,700%.

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Let's take a closer look at this healthcare business. As you might have suspected from its name, it's a cancer care provider, offering doctors' services, infusions, radiation, pharmacy services, and more. America's healthcare system has been moving toward value-based arrangements (paying healthcare providers for good outcomes) instead of fee-for-services (where providers get paid when services are used). Similarly, The Oncology Institute has struck deals in which it's rewarded by serving patients well in a cost-efficient manner.

It recently was treating 1.9 million patients across five states (including Florida and Oregon). That limited coverage suggests plenty of room to grow, provided the company performs well.

In the third quarter, The Oncology Institute posted revenue of $137 million, up nearly 37% year over year, and gross profit up nearly 32%. Its bottom line was a net loss of $16.5 million, a bit wider than the year before. The growth here was faster than the previous quarter's.

CEO Daniel Virnich added:

During the quarter, we made meaningful progress in leveraging AI [artificial intelligence] to drive efficiencies in our operations and improve the patient experience. These were just some of the factors that allowed us to increase our full-year guidance and reaffirm our positive outlook for Q4 adjusted EBITDA [earnings before interest, taxes, depreciation, and amortization]. As a leader in oncology value-based care, it is important for us to not only raise the quality of care but also lower that cost of care. We believe we are well-positioned to achieve this goal, while simultaneously driving durable and sustainable growth.

So, will the company's torrid growth continue? It might -- in part because the stock still doesn't seem wildly overvalued, with a recent price-to-sales ratio of just 0.6. But keep in mind that it's not running a profit at this point, and it's a riskier proposition than other great growth stocks.

Selena Maranjian has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.