Option Care Health (OPCH): Assessing Valuation After Strong Q2 Growth and Raised 2025 Guidance

Option Care Health (OPCH) just released its second quarter 2025 results, showing impressive year-over-year revenue growth and a boost in adjusted EPS. Management responded by raising full-year guidance, signaling increased confidence in future performance.

See our latest analysis for Option Care Health.

Option Care Health’s strong Q2 results and raised guidance seem to have reignited optimism, with the share price up nearly 20% year-to-date. However, the one-year total return remains down at -12.4%, reflecting last year’s volatility. A 5-year total shareholder return of nearly 98% shows the long-term trend is still positive.

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But with shares still well below analysts’ targets and the company posting consistent growth, is Option Care Health now trading at a discount? Or has the market already priced in this momentum and future gains?

Most Popular Narrative: 28.5% Undervalued

Option Care Health's most widely followed narrative points to a fair value well above the recent close. While shares have climbed this year, the current price sits meaningfully below the fair value suggested by key drivers behind the narrative.

Growth in both acute and chronic infusion therapies is outpacing the market, driven by demographic shifts (aging population and higher prevalence of chronic/complex conditions), which is expanding Option Care Health's addressable market and positioning the company for sustained revenue growth.

Read the complete narrative.

Curious how strong healthcare trends and the surge in advanced therapies are fueling this ambitious valuation? The narrative's case goes deep into market expansion, sustainable growth, and financial targets that could tilt the scales for Option Care Health. Want to know what numbers and assumptions underpin this bullish outlook? See what's driving the biggest gap between price and potential.

Result: Fair Value of $37.90 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing reimbursement pressures and shifts toward lower-margin therapies present real challenges that could limit Option Care Health’s path to sustained outperformance.

Find out about the key risks to this Option Care Health narrative.

Build Your Own Option Care Health Narrative

If you see the story differently or want your research to shape the outlook, you can build a fresh narrative in just a few 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.

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