Healthcare professionals are currently facing one of the most challenging times in their careers. The global pandemic has changed the world and forced healthcare providers to move quickly in order to save lives and safely provide patients with the care that they need. That’s why it makes sense that more and more healthcare providers are moving their operations into the digital age.
Prior to the pandemic, many healthcare professionals still relied on physical paperwork and in-office visits to serve their patients. Now, the healthcare world is moving into the digital age at a rapid pace. Businesses that have unique digital health services are benefitting greatly from this swift industry-wide change, and their stocks are rising as a result. The digital health space is a fascinating industry that is growing at an exponential rate, which is why it’s a good idea to take a look at some of the best companies in the sector. Let’s take a look at 3 digital health stocks to consider buying now.
Livongo Health Inc (NASDAQ:LVGO)
Before Livongo Health created its unique Applied Health Signals platform, people with chronic conditions like Diabetes had to self-manage their health issues. The truth is that the healthcare system isn’t really designed to help people with continuously managing chronic conditions, which is why Livongo is so compelling. Now, patients with these types of chronic conditions can use Livongo’s platform to receive personalized action plans that help them manage their health. Instead of heading into the doctor for frequent consultations, Livongo’s platform provides remote monitoring and real-time personal coaching. The result is healthier patients and large amounts of money saved for healthcare providers.
Just take a look at Livongo’s stock price performance over the last few months. It’s currently trading around its 52-week highs and has doubled in price since April. The company is adding major partners like CVS Pharmacy along with other clients like government entities, labor unions, and employers at a steady pace, which shows just how in-demand this technology is. When Livongo reported it’s Q1 earnings in early May, revenue came in at $68.8 million, a 115% year-over-year increase. All signs are pointing towards continued growth for this compelling business, which is why you should consider adding shares sooner rather than later.
Health Catalyst (HCAT:NASDAQ)
One of the most interesting things to note about digital health companies has to do with the sheer amount of data they are compiling. This data can be used in so many different ways to improve the way that patients are treated and how finances are managed in the industry. When you also consider the potential applications of using cutting-edge technology like artificial intelligence, healthcare data has tons of potential. One company offers a cloud-based data platform that is focused on providing data and analytics to healthcare organizations worldwide.
Health Catalyst primarily serves healthcare providers with its powerful platform. Thanks to the global pandemic, the need for data-informed healthcare and analytics has never been higher. Healthcare providers were already looking for any possible way to increase their efficiencies, and Health Catalyst offers the perfect solution to data collection issues. Its innovative enterprise AI solution helps users gather massive data sets and provides actionable insights using machine learning. The company reported Q1 earnings that beat on both EPS and Revenue estimates and should continue its growth going forward.
Teledoc Health Inc (NYSE:TDOC)
Another great digital health stock to look into is Teladoc. This is a company that provides physicians with the ability to connect directly with patients for online consultations. Their platform makes it more convenient and timelier than visiting the doctor in person. During the age of the global pandemic and social distancing, the services that Teladoc has to offer are changing the way that people access healthcare all over the world. The bottom line is that telemedicine is here to stay, and Teladoc is the leader in the industry at this time.
The recurring theme with digital health companies is that they are all growing quickly. Teladoc reported year-over-year revenue growth of 41% when it reported its Q1 earnings in late April. Total visits in Q1, which is a number that includes paid memberships along with fee-only visits, grew by 92% year-over-year to just over 2 million. These are exciting growth numbers that show just how quickly telemedicine is becoming a necessity in healthcare. One of the big risks with this stock is that they will face competitors that offer similar services, but it appears that they are the gold standard of telemedicine for the time being and it will take a lot to dethrone them.
The Future is Now
We already saw a trend of healthcare providers trying to modernize their operations prior to the global health crisis this year, and that trend has only been accelerated in recent months. Each one of these companies has massive growth potential going forward and should perform well throughout the rest of the year.
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