Is Option Care Health, Inc. (OPCH) A Good Stock To Buy Now?

Is OPCH a good stock to buy? We came across a bullish thesis on Option Care Health, Inc. on r/ValueInvesting by Unusual_Reveal_8569. In this article, we will summarize the bulls’ thesis on OPCH. Option Care Health, Inc.'s share was trading at $21.99 as of June 18th. OPCH’s trailing and forward P/E were 17.16 and 12.35 respectively according to Yahoo Finance.

Option Care Health (OPCH) is the largest independent provider of home and alternate-site infusion services in the United States, operating a high-quality healthcare platform anchored in chronic infusion therapies, immunoglobulin treatments, and anti-infective medications, with strong payer integration and structurally sticky patient demand driven by the preference for at-home care versus hospital settings.

The company has recently generated quarterly revenues in the $1.3–1.4 billion range, maintains approximately 2x net leverage, and delivers mid-to-high single digit EBITDA margins with forward guidance improving toward ~8.5 percent, reflecting underlying operational stability despite near-term volatility. A sharp Q1 2026 revenue miss and roughly 30 percent share price decline were driven primarily by Stelara biosimilar disruption within chronic inflammatory disease, where high-margin infusion volumes were unexpectedly displaced by self-administered alternatives, creating a market perception of structural demand erosion in a key profit pool.

However, the core investment thesis argues this dislocation is largely cyclical in the medium term, as meaningful additional biosimilar or self-administration substitution risk across OPCH’s broader molecule portfolio is limited until late 2027 to 2028, with most therapies exhibiting either slow transition dynamics or low economic impact. The valuation already reflects this pessimism, with OPCH trading at a forward P/E near 11x and EV/EBITDA around 10x, well below healthcare peers and historical averages, despite resilient earnings power and a ~$1 billion buyback program supporting capital returns.

Additional upside catalysts include insider buying, pipeline expansion into neurology, oncology, and rare disease infusibles, and secular tailwinds from continued migration of treatments from hospital to home care settings.

Overall, the setup is framed as an asymmetric opportunity where the base case implies 10 to 35 percent upside and the bull case implies 35 to 50 percent upside over the next one to three quarters, while downside is limited to roughly minus 5 to minus 15 percent, leaving the investment with a skewed risk-reward profile that remains fundamentally intact even under cautious market assumptions.

Previously, we covered a bullish thesis on Chemed Corporation (CHE) by 310 Value in April 2025, which highlighted durable earnings from its acyclical Roto-Rooter and Vitas segments alongside opportunistic share buybacks driving long-term value creation. CHE’s stock price has depreciated by approximately 25.48% since our coverage. Unusual_Reveal_8569 shares a similar view but emphasizes Option Care Health’s (OPCH) healthcare-driven volatility and biosimilar disruption as the key rerating catalyst.

Option Care Health, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held OPCH at the end of the first quarter which was 33 in the previous quarter. While we acknowledge the risk and potential of OPCH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than OPCH and that has 10,000% upside potential, check out our report about this cheapest AI stock.