#7 - Teladoc Health (NYSE:TDOC)
I’ve always found the doctor-patient relationship a little like the old days of buying a car. It was needlessly too formal. I’m not saying that there shouldn’t be safeguards and protocols particularly for people with chronic conditions that require careful, personal monitoring. But the whole idea of going to the doctor’s for a routine checkup seemed a bit unnecessary. Like what if you could just give the doctor a quick call and say, “Hey, I’m fine. The medicine is working great.”
What’s that you say? There’s an app for that? Well, it’s not that simple, but it’s the basic idea behind the incredible performance of Teladoc Health (NYSE:TDOC). Like many pandemic stock winners, Teladoc benefited because doctor’s offices were literally closed. But patients still needed access to quality healthcare.
And with Teladoc merging with Livongo Health (NASDAQ:LVGO ), the company will have the analytical tools to go along with its personalized doctor’s visit. Investors don’t like the short-term pain that’s being caused by the merger (existing shareholders are seeing their shares get diluted). But that looks to be just a small blip. Teladoc stock is down 14% since September and has a strong long-term growth story.
About Teladoc Health
Teladoc Health, Inc provides virtual healthcare services worldwide. The company operates through Teladoc Health Integrated Care and BetterHelp segments. The Integrated Care segment offers virtual medical services, including general medical, expert medical, specialty medical, chronic condition management, and mental health, as well as enabling technologies and enterprise telehealth solutions for hospitals and health systems.
Read More - Current Price
- $10.63
- Consensus Rating
- Hold
- Ratings Breakdown
- 7 Buy Ratings, 14 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $12.08 (13.7% Upside)
Investing in tech stocks requires high-risk tolerance. Undoubtedly this sector has the potential to deliver gains that outpace the broader market. But it’s also prone to pullbacks and corrections. Just in the last two years, we’ve seen three or four times when tech stocks have rolled over.
At times like these, it’s tempting to bail out, but you can’t. If you’re looking for growth in stocks, there is no other sector that is going to deliver. But here’s where I introduce a note of caution. You have to choose wisely. Many tech stocks are small-cap stocks that don’t have a defined revenue stream. Others may be more mature but are overpriced even after a broad pullback.
The key to buying on the dip in tech stocks is to find stocks that are leaning into societal trends and also are still reasonably priced. The stocks in this presentation fit that description. If you’re not ready to jump on them right now, you can put them on your watch list and receive alerts through your MarketBeat subscription.
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