5 Best Telehealth Stocks • Benzinga

Telehealth boomed during the pandemic as patients met with health professionals through virtual appointments. The telehealth trend has been on the upswing since the pandemic as both sides see the convenience of scheduling virtual appointments instead of meeting in person. Telehealth stocks allow investors to strengthen their portfolios through this trend. Investors who want exposure to telehealth may want to buy these top telehealth stocks.

Telehealth stocks give you exposure to a growing industry, but some companies are better than others. These are some of the top telehealth stocks on the market.

Teladoc Health is a global leader in whole-person virtual care that gives everyone in the world access to the best healthcare. Shares are up by 23% year-to-date but are well removed from their all-time high of $294.54 per share. The company grew its revenue by 10% in the second quarter, partially from the company’s new products and services. Net losses came in at $65.22 million, marking a significant improvement from the $3.1 billion net loss from the same quarter last year.

Doximity is a profitable digital platform for U.S. medical professionals. The company’s medical network includes over 80% of U.S. physicians across various specialties. Shares are up by 4% year-to-date and currently have a 65 price-to-earnings (P/E) ratio. Revenue increased by 18.5% year-over-year to start 2023, totaling $111 million. The company aims to exceed $1 billion in annual revenue by 2028. The company also aims to generate $500 million to $506 million in 2024, which started on April 1, 2023, and ends on March 31, 2024.  

CVS Health is a healthcare conglomerate that is down by 18% year-to-date and up by 16% over the past five years. Shares currently hold a 25 P/E ratio and a 3.20% dividend yield. The company recently raised its quarterly dividend from $0.55 to $0.605, marking a 10% year-over-year increase. The company owns the CVS Pharmacy retail chain, Aetna and other brands. The company generated $85.3 billion in revenue and a $2.20 adjusted earnings-per-share (EPS) in the first quarter of 2023. Revenue jumped by 10.8% year-over-year.

iRhythm Technologies shares have been volatile. They are up by 7% year-to-date and have gained 20% over the past five years. The company is not yet profitable but has experienced several consecutive quarters of revenue growth above 20% year-over-year. Losses are also narrowing year-over-year. The company creates digital healthcare products that help patients and medical professionals detect diseases before they grow. This knowledge can help patients and medical professionals devise a plan to prevent the disease from growing and stop it in its tracks.

Hims & Hers Health sells prescriptions and over-the-counter drugs online. The company is on the brink of profitability and is a high-growth company. Revenue surged by 88.3% year-over-year in the first quarter. The company reported $190.8 million in revenue and a net loss of $10.1 million. That net loss is a 38.1% year-over-year improvement from the same quarter last year. Shares are up by 33% year-to-date but are down by 14% over the past five years. Shares have been on a mostly upward trajectory since May 2022.

Telehealth stocks are companies that benefit from the growing demand for telehealth services. These companies allow patients and health professionals to connect virtually instead of in person. Some telehealth stocks only provide this service, while others also sell prescriptions and various medical products.

Investing in telehealth stocks can help with portfolio diversification and give you exposure to a growing industry. Telehealth became mainstream during the pandemic, and some people would prefer to stay home than drive to a health professional. Healthcare is going digital, and telehealth stocks let investors capitalize on this trend.

If you want to invest in telehealth stocks, you will need a broker. Some stock brokers are better than others, but these are some of the top choices.

It is important to consider several actors before investing in the telehealth market. Conducting your due diligence in these key areas can make you feel more confident about your investments and increase the likelihood of making profitable investments.

Some telehealth companies are better positioned than others to capitalize on the trend. Companies need capital, technology and other resources to gain market share. Investors should see how companies are innovating and monitor their revenue growth rates to gauge changes to the company’s market share.

Revenue growth helps investors assess if a company is reaching more people and can charge more for its products and services. Net income growth indicates a company’s sustainability. A company with high revenue growth and increasing net losses will have to adjust to stick around for the long run.

When smaller telehealth companies establish partnerships with large healthcare companies, it gives their solutions extra credibility. Those partnerships can also introduce new revenue streams for the company. If no one is willing to work with a telehealth company, it may be a bad sign for the company’s technology and future.

Telehealth companies can make great strides in the industry through investments in new technology. Any innovation can put a telehealth company ahead of the competition and make it more desirable for patients and medical professionals. 

Telehealth stocks can give your portfolio extra diversification and spread your risk across more assets and sectors. Investors can choose from several telehealth stocks but conducting due diligence can increase the likelihood of picking profitable investments. 

The best telehealth stocks methodology involved looking for stocks with exposure to telehealth. The preference was to select profitable companies. Unprofitable companies were filtered for high revenue growth and progress with reducing net losses.