Telemedicine stocks had a roller coaster ride for most of 2020. What’s there for the investors in the future? Let’s see!
The health sector has benefited the most from the global pandemic, increasing the significance of the healthcare stocks. In that premise, the telehealth sector has also become a success story and has a prosperous future ahead.
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The demand is only going up. Due to social distancing people are preferring to use telehealth services. The market has grown swiftly and is expected to get even bigger. In April 2020, 46% of U.S. consumers were using telehealth.
According to research and markets, the revenue of the telemedicine market is estimated to grow at a CAGR of more than 28% between 2019 and 2025. The evolving technology has influenced every sector.
Telemedicine is the future of the health sector. They are already proving virtual medical appointments and services based on cloud and artificial intelligence.
Here are the top three telemedicine stocks that are best fit for investors.
Teladoc Health (TDOC)
Analysts weighed on Teladoc Health (TDOC) stock earlier this year to cross the $200 price market. The stock touched its all-time high in August at $253. However, it dropped below $200, and currently, TDOC is trading around $192.
Despite the price drop, TDOC remains one of the most compelling healthcare stocks in the market. During the third quarter, the company reported revenue growth of 109% to $288.8 million, with a whopping 206% increase in total visits. This settles the last nine-month revenue at $710.6 million, up by almost 80%.
The recent drop in the shares price has created an upside space for the stock. Baird Equity Research rates the stock as a hold for now. For new investors, the potential is there with increasing market growth.
Moreover, the strong Q3 results have exceeded expectations which were influenced by widespread growth across the health business. The company has recorded growth in member visits throughout all of its commercial channels. The transforming telemedicine sector holds long-term growth. So, keep Teladoc stock insight.
With M3 (MTHRF) trading around its all-time high, is it still a good option to buy the stock? M3 provides virtual medical services to physicians and other healthcare professionals. MTHRF stock is one of the hottest in the telehealth sector to record notable growth going forward. Analysts rate the stock as a buy.
M3 has a value of 59.37 billion and its proceeding revenue from the past 12-months is almost $1.4 billion. Average analysts forecast M3 stock soar by an average of 30% annually over the next five years.
With most analysts going bullish on M3, the prospect stays stronger than ever. The stock has rocketed over 72% so far in 2020. In the near-term, the stock holds an upside potential, but there’s much more to see in the long-term.
The earnings trade at 159 times next year’s earnings. With most of the short-term signals, along with a general good trend, being positive, investors should take a fair chance on M3 stock.
The recent drop in Anthem (ANTM) has put the stock on Zacks rating at neutral (Hold). Despite that, the upside potential is there and Anthem is a promising stock to keep on your list moving forward.
The global pandemic provided a suitable platform for Anthem to accelerate its growth. Anthem’s Live Health Online provides a platform for patients to consult with health professionals. The patients can consult regarding COVID-19, other mental, and physical health concerns. Through this platform, patients can get expert advice, treatment plan, and prescriptions. It cost around $59 which is quite suitable in these harsh conditions. It offers health security while staying at home.
As per Zacks Consensus Estimates for the full year 2020, Anthem is projected to have a revenue of $120.41 billion and earnings of $22.41 per share. This marks changes for the telehealth firm of +16.74% and +15.28%, from the prior year respectively.
Analyzing the Zacks estimates as a good sign, Anthem has much more in the tank to offer over the next few years.