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As the need for telemedicine options increase amid the coronavirus crisis, telehealth stocks are predicted to significantly benefit from the change.
At the moment, there are still many restrictions placed in many parts of the world as governments struggle to curb the coronavirus pandemic. These restrictions have seriously affected businesses costing millions in both revenue and jobs. As these restrictions continue, several sectors are trying to make changes that will not only help them continue operations now but will also make these operations easier in the future. A spreading change for health right now is telehealth, with these telehealth stocks primed for a boost.
Also called telemedicine, this allows health officials to continue examining, diagnosing and treating patients without any need for physical presence. Just the same way people have conferences and business meetings remotely via video, health officials are now doing the same.
The prospect of telehealth is expected to be a serious game-changer as it brings some ease to the medical sector. It is also much cheaper to consult a specialist remotely, making access to health a lot broader. In the UK, there is an explosion of telehealth demands, forcing health workers to adapt accordingly. Speaking to CNBC, UK’s Royal College of General Practitioners former chair Dr. Clare Gerada has said that she rarely sees patients physically. She says nearly 99% of patient care is now remote.
With these, telehealth stocks are well primed to benefit from the ongoing pandemic, and even further after it is over. Here are a few to look out for.
Teladoc Health Inc (NYSE: TDOC)
Teladoc has seen significant growth in the last year. Its price jumped nearly 244% from 48.57% to nearly $167 at some point. In the last month, it pumped from $114.26 to $167, a record high. Currently, at $143, TDOC has still pulled in over 66% gains in 2020.
KeyBanc Capital Markets analyst Donald Hooker believes that “TDOC is now set up for 30%+ revenue growth.” Hooker also added that over 50% of Teladoc visits last week were new users, suggesting that more people will get on the platform after the pandemic.
The company has not posted profits in the past year. However, its losses per quarter have plummeted significantly to $19 million, from $30 million.
Humana Inc (NYSE: HUM)
Based in Kentucky, Humana is a health insurance company with telehealth offers such as its Kindred at Home and Humana at Home. The company is seriously bearing down on exposing its customers to more healthcare options via telehealth and is well primed for a telehealth explosion whenever it does happen.
HUM fell to $214.43 from $385 last month, but has now climbed and is at $335. The company’s revenue has also been hitting $16 billion through the quarters, with $500 million in profit.
CVS Health (NYSE: CVS)
The healthcare company runs MinuteClinic, its telehealth arm and even though CVS stock was hampered by the recent stock crash, the company is still well-positioned for a telehealth explosion. In the last 12 months, CVS Health Corporation hit a $77.03 high but has now plunged, currently trading at $60.23.
In the same period, however, revenues have been steady, with figures around $60 billion. Also, quarterly income has been around $1.5 billion for every quarter in the period.
The above stocks, if the current telehealth explosion continues, are quite primed to benefit significantly.