RadNet, Inc.’s share was trading at $71.22 with a trailing P/E of 386.89. The company’s revenue is heavily reliant on its core business, with less than 5% coming from its Digital Health segment. External adoption of AI tools has been minimal, and revenue growth metrics are clouded by consolidations and opaque reporting practices.

Insider selling of over 780,000 shares worth $50.9 million in the past two years raises concerns about RadNet’s valuation. The company faces reimbursement pressure and limited sustainable growth in its imaging center business. Investor enthusiasm for AI-driven disruption may be inflating the stock’s value, which could be more hype than operational success.

Tenet Healthcare Corporation’s stock price has increased by approximately 56.62% since a bullish thesis was covered in December 2024. The company’s Ambulatory Care segment continues to drive value, with strong cash flow, debt reduction, and undervaluation supporting its growth. In contrast, RadNet’s AI growth, opaque reporting, and overvaluation are highlighted as concerns by Hunterbrook.

Read more at Yahoo Finance: RadNet, Inc. (RDNT): A Bear Case Theory