LH - 3 Telemedicine Stocks to Watch as Healthcare Goes Digital
2023-04-28 06:20:53 ET
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In a world where uncertainty looms large in the financial markets, healthcare offers an incredible safe haven for investors. Telemedicine stocks, in particular, are not only a shelter but a gateway to the future of healthcare.
These innovative companies are riding the wave of emerging trends, revolutionizing how we access medical care from the comfort of our homes.
Telemedicine stocks to buy are looking to address pressing issues like the skyrocketing healthcare costs in the U.S.
Despite the pandemic being in the rear-view mirror, the ‘do-it-from-home’ phenomenon is here to stay, and telehealth appointments fit right into our on-the-go lifestyles.
The telehealth market could skyrocket by 24% between 2023 to 2030 . This may be the perfect time to explore telemedicine stocks to watch.
Let’s look at the best telemedicine stocks, which are effectively pushing the needle for the fast-evolving telehealth sphere.
TDOC Teladoc $27.60 CVS CVS $73.03 EDOC The Global X Telemedicine & Digital Health ETF’s $11.71
Teladoc ( TDOC )
Teladoc (NYSE: TDOC ) is a telehealth titan, which is usually a no-brainer stock to buy in its sector. With a simple yet ingenious approach, the company platform connects patients with a lineup of medical experts online for a subscription fee.
This winning formula has proven to be remarkably successful across various industries. Though it isn’t profitable yet, those who are invested in it for the long haul will benefit immensely.
It recently posted its first-quarter earnings results, which saw the firm beating estimates across both lines. Revenues were up 11%, as its losses continued to shrink each quarter.
It posted an EBITDA margin of negative 0.6%, compared to its five-year average of negative 8.5% . Moreover, its free cash flow margins are at an amazing 7.06%, as its cash balance speeds past the $1 billion mark.
CVS ( CVS )
CVS (NYSE: CVS ) is reinventing the game as the largest pharmacy healthcare provider in the U.S.
It boasts a rock-solid balance sheet, impressive free cash flows, and a tantalizing valuation. This allows the firm to stand out from the stock with services spanning insurance, prescription drug management, and primary care.
The integration of telehealth into CVS’s Minute Clinics takes their offerings to new heights. By partnering with select providers, these clinics can effectively deliver 24/7 access to essential healthcare advice and prescription refills.
CVS has scooped up Signify Health recently, a prominent healthcare platform utilizing advanced analytics and technology .
Through Signify Health, CVS Health gains over 10,000 clinicians, telehealth services, remote patient monitor in, and virtual visits across a nationwide network of healthcare experts.
As the sector gains momentum, the company is poised to ride the wave of innovation, further solidifying its strength in the healthcare sector.
Global X Telemedicine & Digital Health ETF ( EDOC )
The Global X Telemedicine & Digital Health ETF’s (NASDAQ: EDOC ) presents a compelling opportunity for those looking to wager on the fast-evolving digital health landscape.
Launched in July 2020, EDOC offers exposure to various global businesses, including telemedicine, healthcare analytics, and connected healthcare devices. The fund’s portfolio consists of roughly 40 stocks , effectively following the Solactive Telemedicine & Digital Health Index, with most of its holdings in the U.S.
Investing in EDOC allows investors to capitalize on burgeoning themes within the digital health sector without worrying about individual stock picking.
This advantage is valuable in an emerging growth market like digital health, where investing may seem daunting.
The EDOC ETF has holdings in some of the top healthcare tech stocks , such as Illumina (NASDAQ: ILMN ) and Laboratory Corporation of America (NYSE: LH ), and i Rhythm Technologies (NASDAQ: IRTC ), which offer monstrous upside ahead.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines .
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
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