Option Care Health (OPCH) has quietly put together a strong run, with the stock up around 10% over the past month and more than 40% this year, outpacing many healthcare peers.

That backdrop fits a broader pattern, with Option Care Health’s roughly 43% year to date share price return and solid multi year total shareholder returns suggesting that momentum is still building as investors reassess its growth and risk profile.

If Option Care’s run has you rethinking healthcare exposure, it might be a good moment to see what else is working across healthcare stocks and compare opportunities.

Yet with shares now near analysts’ targets and trading above many historical valuation marks, the key question is whether Option Care Health still offers upside or if the market is already pricing in its future growth.

Most Popular Narrative Narrative: 11% Undervalued

With Option Care Health last closing at $32.51 against a narrative fair value of about $36.45, the valuation case leans toward further upside and puts its growth drivers under the microscope.

Continued expansion of the company's national suite footprint and advanced practitioner model is improving nurse productivity and enabling the treatment of higher acuity, complex, and new therapeutic cohorts (including oncology and Alzheimer's), driving both margin improvements and new revenue streams.

Want to see what kind of earnings expansion this scale up implies? The narrative leans on rising margins, compounding revenue, and a premium future earnings multiple. Curious how those levers stack up to support that higher fair value?

Result: Fair Value of $36.45 (UNDERVALUED)

However, shifting therapy mix and potential reimbursement pressure could quickly compress margins, which may limit earnings expansion and challenge the upbeat valuation narrative.

Build Your Own Option Care Health Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a custom view in just minutes: Do it your way.

A great starting point for your Option Care Health research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.