3 Best Telemedicine Stocks for Investors
What's a break in the clouds due to the pandemic? Maybe the ease of meeting with your doctor. Currently, 76% of U.S. hospitals connect with patients and practitioners through the...
What's a break in the clouds due to the pandemic? Maybe the ease of meeting with your doctor. Currently, 76% of U.S. hospitals connect with patients and practitioners through the use of video and other technology.
Picking the right company may not seem incredibly easy, especially as telehealth rises in popularity.
As to the onset of the COVID-19 pandemic, both physicians and patients embraced telehealth in April 2020. In fact, the number of virtual visits was 78 times higher than it had been two months earlier, according to McKinsey. In May 2021, 88% of consumers said that they had used telehealth services at some point since the COVID-19 pandemic began.
Let's take a look at the definition of telemedicine and three solid stocks you can take a look at for your portfolio.
What is Telemedicine?
So, what exactly is telemedicine? It lets your doctor provide care for you without an in-person office visit — you can access your provider on your computer, tablet or smartphone. Patients can use secure messaging, email and file exchange with their providers.
You might even use a device to capture vital signs or other vitals to help your doctor determine the best care route for you. You can still access telemedicine even if you don't have a stable internet connection or device connected to the internet. It's ideal for monitoring ongoing health issues like medicine you need or continued health concerns. Here are the things you can do with telemedicine:
- Lab tests
- X-ray results
- Mental health treatment
- Treatment for recurring conditions
- Skin conditions
- Prescription management
- Urgent care issues
- Post-surgical follow-up
- Physical therapy and occupational therapy
Your doctor may require information about your weight, blood pressure, blood sugar or vital information, wound conditions, etc.
3 Best Telemedicine Stocks
What are the best telemedicine stocks to put in your back pocket?
Skylight Health Group Inc., a healthcare services and technology company, is headquartered in Mississauga, Canada. The company operates a United States health network that offers a range of services, including:
- Primary care
- Allied health
- Laboratory and diagnostic testing
The company owns and operates a proprietary electronic health record system that supports care to patients via telemedicine and other remote monitoring system integrations. The company operates an insurable fee-for-service model that contracts with Medicare, Medicaid and other commercial payers through a subscription.
Revenues for the year were $27.2 million, compared to $0.7 million at the end of December 2020. Gross profit was $15.1 million at the end of December 31, 2021, compared to $0.3 million at the end of 2020. Gross margin was 56% for the year, compared to 39% to the previous year.
Adjusted EBITDA has a loss of $14.6 million in 2021 compared to loss of $6 million in 2020, driven by one-time expenses in infrastructure development and acquisition related expenses. Loss from continuing operations in 2021 was $22.2 million.
Hospitals, physicians, clinicians and patients worldwide benefit from Medtronic plc's medical therapies and is headquartered in Dublin, Ireland. The company has several segments which develops the following:
- Cardiac pacemakers
- Cardioverter defibrillators
- Cardiac resynchronization therapy devices
- AF ablation products
- Insertable cardiac monitor systems
- Mechanical circulatory support
- TYRX products
- Remote monitoring and patient-centered software
- Aortic valves
- Percutaneous coronary intervention stents
- Surgical valve replacement and repair products
- Endovascular stent grafts
- Percutaneous angioplasty balloons
- Products to treat superficial venous diseases in the lower extremities
- Surgical products
- Insulin pumps and consumables
- Continuous glucose monitoring systems
The company's revenue of $7.8 billion was flat year-over-year as reported and grew 2% organically. GAAP diluted EPS of $1.10 grew 17% and non-GAAP diluted EPS of $1.37 grew 6%.
The company expects Q4 organic revenue growth of approximately 5.5%, in line with current Q4 organic revenue growth. Q4 revenue would be negatively affected by approximately $185 million.
Doximity Inc. operates a cloud-based digital platform for medical professionals in the United States. The company's cloud-based platform provides its members with tools built for medical professionals, enabling them to collaborate with their colleagues, coordinate patient care, conduct virtual patient visits, stay up-to-date with the latest medical news and research, and manage their careers. It primarily serves pharmaceutical companies and health systems. The company was formerly known as 3MD Communications, Inc. and changed its name to Doximity, Inc. in June 2010. Doximity, Inc. was incorporated in 2010 and is headquartered in San Francisco, California.
The company offers a revenue of $97.9 million, versus $58.7 million, an increase of 67% year-over-year. The company has a net income of $55.6 million, versus $17.2 million, representing a 57% margin. Non-GAAP net income of $63.6 million, versus $19.5 million, representing a 65% margin. The company has an adjusted EBITDA of $47 million, versus $21.5 million, an increase of 119% year-over-year.
Diluted net income per share was $0.26, versus $0.05, while non-GAAP diluted net income per share was $0.29, versus $0.07. Operating cash was $27.3 million, versus $24 million and a free cash flow of $25.6 million, versus $22.9 million.
Consider Telemedicine Stocks
When you consider all the stocks available to invest in, the biggest mistake you can make is to not invest at all. The best gift you can give yourself is to take a look at all the company financials of the companies you're investing in and take a look at the fundamentals as well.
You can get a sense of which companies will offer safe and steady returns over time by considering complete and in-depth analysis. That is, you can't just do a quick calculation and call it done.
It's important to invest in companies, not stocks. Never invest in a company you don't understand, and that includes taking a deep look into telemedicine stocks you're interested in investing in.
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