3 Best Telehealth Stocks to Watch For in 2021

The telehealth stocks have evolved this year with health crisis at its peak. Let’s see how well the telehealth stocks have been performing.

The coronavirus seems to be an everlasting pandemic. Recently, there was a new sort of COVID-19 virus detected in the U.K. Though the vaccine for the virus has already made it to the market. Still, the impact of the vaccine will reflect its results by the mid of next year. Then we will know the actual results at the ground level.

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‎In the meanwhile, the significance of telehealth firms has increased more than ever. The increasing health issues have driven more patients towards telehealth service. Telehealth or telemedicine has been a success story during this pandemic. Apart from that, the future awaits much bigger things from the telehealth sector.

According to McKinsey, almost 46% of U.S. consumers in April used telehealth services rather than visiting clinics. The telehealth market is estimated to get even bigger and by 2025 it would increase at a CAGR of over 28%.

So, there is a lot more potential in telehealth stocks. Let’s have a look at the top three stocks to watch for in 2021.

CVS Health (CVS)

CVS Health (CVS) has been on a bullish run since mid-Nov 2020. The company has had a thriving year so far. In May, CVS reported a whopping 600% bump in its telehealth services from the same period in 2019. More patients were having virtual visits through MinuteClinic.

CVS has a strong build-up and is one of the largest retail corporations in the country. The company was growing swiftly before the pandemic and with the pandemic impact, things have gotten even better.

There was another wave in September when the company saw increased activity as members refilled 90-day prescriptions. Flu vaccines were the most in-demand during September and October. This showed that people are more responsible regarding their health and they don’t want to risk going out.

CVS is a big firm and it has long-term bullish momentum. So, CVS Health (CVS) stock is one of the telehealth stocks to keep insight as we head into 2021.

American Well (AMWL)

Another hot telehealth stock in the market, American Well (AMWL) has recently been listed on NYSE. Amwell provides various telehealth services that can be delivered remotely.

Most of the clients of Amwell are from their health systems, employers, partners & retailers, and health insurance plans. Back in 2019, the company recorded 84% of recurring billing, which helped in gaining the interest of investors.

Amwell’s revenue grew up to 30% in 2019 and almost over 77% in the first half of this year. In the third quarter, the company recorded a revenue of $62.6 million, up by 80% from the prior year. Amwell had over 930% more active users in Q3, which were around 62K. Whereas, the total visits at Amwell were around 1.4 million, almost 80% more year-over-year.

Moreover, the telehealth firm has also announced some new products including, Amwell Now, C500 telemedicine cart, Tablet software, and Touchpoint.

The co-CEO of American Well, Ido Schoenberg stated that the third-quarter results reflect the true momentum of their business. They will continue to perform telehealth services at a large scale, meeting the widespread demand of the health sector.

1Life Healthcare (ONEM)

1Life Healthcare, which is also known as One Medical (ONEM) provides membership-based primary care services to its clients. The customers have both options of in-person care and telehealth services.

Early in January 2020, One Medical become a publicly listed company. It was a good time for the company to go public. The pandemic has accelerated the growth of the telehealth sector.

In the coming years, telehealth is more likely to become a permanent health care delivery system due to its convenience and cost-effectiveness. This makes telehealth stocks a long-term investment. One Medical is making strong progress and looks good for long-term growth.

In the third quarter, the company obtained a key milestone by reaching a membership count of 511,000 members. The company reported accelerated growth in both consumer and enterprise channels.

The revenue for Q3 was $101.7 million, which was over 46% year-over-year. The membership revenue was reported at $17.3 million, up by 29%, while net patient service and partnership revenues were $40.2 million and $43.9 million, respectively.

So far, 1Life Healthcare (ONEM) has had significant growth. ONEM stock can be an interesting bet for investors in 2021.

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