Spotting Winners: LifeStance Health Group (NASDAQ:LFST) And Outpatient & Specialty Care Stocks In Q1

Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at LifeStance Health Group (NASDAQ:LFST) and its peers.

The outpatient and specialty care industry delivers targeted medical services in non-hospital settings that are often cost-effective compared to inpatient alternatives. This means that they are more desired as rising healthcare costs and ways to combat them become more and more top-of-mind. Outpatient and specialty care providers boast revenue streams that are stable due to the recurring nature of treatment for chronic conditions and long-term patient relationships. However, their reliance on government reimbursement programs like Medicare means stroke-of-the-pen risk. Additionally, scaling a network of facilities can be capital-intensive with uneven return profiles amid competition from integrated healthcare systems. Looking ahead, the industry is positioned to grow as demand for outpatient services expands, driven by aging populations, a rising prevalence of chronic diseases, and a shift toward value-based care models. Tailwinds include advancements in medical technology that support more complex procedures in outpatient settings and the increasing focus on preventive care, which can be aided by data and AI. However, headwinds such as reimbursement rate cuts, labor shortages, and the financial strain of digitization may temper growth.

The 6 outpatient & specialty care stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 2% while next quarter’s revenue guidance was 5.9% above.

Luckily, outpatient & specialty care stocks have performed well with share prices up 62.4% on average since the latest earnings results.

LifeStance Health Group (NASDAQ:LFST)

With over 6,600 licensed mental health professionals treating more than 880,000 patients annually, LifeStance Health (NASDAQ:LFST) provides outpatient mental health services through a network of clinicians offering psychiatric evaluations, psychological testing, and therapy across 33 states.

LifeStance Health Group reported revenues of $403.5 million, up 21.2% year on year. This print exceeded analysts’ expectations by 4.2%. Overall, it was an exceptional quarter for the company with EBITDA and revenue guidance for next quarter exceeding analysts’ expectations.

“We delivered an exceptional quarter to begin the year, highlighted by strong revenue growth of 21%, net income growth of $13.5 million, and Adjusted EBITDA growth of 48%,” said Dave Bourdon, CEO of LifeStance.

LifeStance Health Group pulled off the biggest analyst estimate beat and fastest revenue growth, but had the weakest guidance update among its peers. Unsurprisingly, the stock is up 46.1% since reporting and currently trades at $10.75.

Is now the time to buy LifeStance Health Group? Access our full analysis of the earnings results here, it’s free.

Best Q1: agilon health (NYSE:AGL)

Transforming how doctors care for seniors by shifting financial incentives from volume to outcomes, agilon health (NYSE:AGL) provides a platform that helps primary care physicians transition to value-based care models for Medicare patients through long-term partnerships and global capitation arrangements.

agilon health reported revenues of $1.42 billion, down 7.3% year on year, outperforming analysts’ expectations by 3.2%. The business had a stunning quarter with EBITDA guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.

agilon health achieved the highest guidance raise and highest full-year guidance raise of the whole group. On a dimmer note, the company lost 85,000 customers and ended up with a total of 426,000. The market seems happy with the results as the stock is up 247% since reporting. It currently trades at $96.58.

Is now the time to buy agilon health? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: U.S. Physical Therapy (NYSE:USPH)

With a nationwide footprint spanning 671 clinics across 42 states, U.S. Physical Therapy (NYSE:USPH) operates a network of outpatient physical therapy clinics and provides industrial injury prevention services to employers across the United States.

U.S. Physical Therapy reported revenues of $198.3 million, up 7.9% year on year, in line with analysts’ expectations. It was a slower quarter as it posted a significant miss of analysts’ EPS estimates.

U.S. Physical Therapy delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 8.8% since the results and currently trades at $80.13.

Read our full analysis of U.S. Physical Therapy’s results here.

Encompass Health (NYSE:EHC)

With a network of 161 specialized facilities across 37 states and Puerto Rico, Encompass Health (NYSE:EHC) operates inpatient rehabilitation hospitals that help patients recover from strokes, hip fractures, and other debilitating conditions.

Encompass Health reported revenues of $1.59 billion, up 9% year on year. This print surpassed analysts’ expectations by 1.2%. It was a satisfactory quarter as it also logged a beat of analysts’ EPS estimates.

The stock is up 9.5% since reporting and currently trades at $109.52.

Read our full, actionable report on Encompass Health here, it’s free.

Surgery Partners (NASDAQ:SGRY)

With more than 180 locations across 33 states serving as alternatives to traditional hospital settings, Surgery Partners (NASDAQ:SGRY) operates a national network of outpatient surgical facilities including ambulatory surgery centers and short-stay surgical hospitals.

Surgery Partners reported revenues of $810.9 million, up 4.5% year on year. This result topped analysts’ expectations by 1.6%. It was a strong quarter as it also recorded a beat of analysts’ EPS estimates.

Surgery Partners had the weakest full-year guidance update among its peers. The stock is up 11.4% since reporting and currently trades at $15.83.

Read our full, actionable report on Surgery Partners here, it’s free.

Market Update

Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.

Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.

By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.