Stocks Telehealth: The Best 5 Stars Stocks in Telehealth and virtual wellness for 2024

The telehealth sector, featuring the best telehealth stocks like TelaDoc and Doximity, is on a trajectory to achieve a staggering $504.24 billion valuation by 2030, marking a commendable 19.7% CAGR. This surge underscores the growing reliance on virtual wellness platforms and the pivotal role companies like TelaDoc Health Inc. are playing, with their notable year-over-year revenue growth.

As we delve into the realm of telehealth, this article will spotlight key players such as TelaDoc, CVS Health Corp., Doximity Inc., and others who are shaping the future of virtual medical consultations and wellness services. Highlighting their financial achievements and strategic expansions, these companies stand out as the top picks for those looking to invest in telehealth’s burgeoning market.

Also read: Investing in Cannabis: The Best 5-Star Stocks for 2024 .

Teladoc Health Inc. (TDOC)

Teladoc Health Inc. (TDOC), a front-runner in the telehealth industry, presents a compelling case for investors with its expansive range of digital health services. Here’s a closer look at what makes TDOC a noteworthy contender in the telehealth sector:

• Financial Overview:
  • Revenue (2023): $2.60 billion, marking an 8.13% increase from the previous year.
  • Net Losses: Reduced significantly to -$220.37 million, showcasing a 98.39% improvement.
  • Market Performance: Despite a challenging market, TDOC’s stock shows promise with a potential increase of 50.42% from its current price to a target of $23.21.
• Strategic Moves:
  • Expansion: Recent initiatives like enhancing obesity and weight management capabilities demonstrate TDOC’s commitment to broadening its service offerings.
  • Acquisitions: The acquisition of Livongo, a chronic care management provider, underscores TDOC’s strategy to dominate the virtual primary care space.
• Analyst Outlook:
  • Consensus: A strong ‘Buy’ rating from analysts, reflecting confidence in TDOC’s growth trajectory.
  • Forecasts: An optimistic one-year forecast predicts a 113.339% price increase, highlighting TDOC as a potential growth stock ready for a bullish run.

Teladoc Health Inc. stands out as a robust option for investors eyeing the telehealth sector, thanks to its strategic expansions, improving financial health, and positive analyst outlook.

CVS Health Corp. (NYSE: CVS)

CVS Health Corp. (NYSE: CVS) has adeptly integrated telehealth services into its MinuteClinics and Aetna health insurance business, making virtual care accessible anytime and anywhere. This strategic move positions CVS as a significant player in the telehealth market, catering to the growing demand for remote healthcare services.

• Stock Performance and Predictions:
  • Current Price (as of March 2024): $75.94
  • Future Predictions: Expected to reach $90 by the end of 2024, with a long-term forecast showing a potential increase to $191.25 by 2035.
  • Analyst Ratings: A robust endorsement with 40% analysts recommending a ‘Strong Buy’ and 50% advocating for a ‘Buy’.
• Financial Forecasts:
  • Revenue Growth: Projected to hit $370.2B in the next year, marking a 3.48% increase, with an anticipated growth to $419.0B in three years.
  • Earnings Growth: CVS outpaces both industry and market averages with a forecasted company growth of 37.17%.

Despite a downtrend in the past year, CVS Health Corp. stock shows promising signs of recovery and growth. Its integration of telehealth services, coupled with positive financial forecasts, underscores its potential as a lucrative addition to investment portfolios, especially for those seeking to capitalize on the burgeoning telehealth market.

Doximity Inc. (NYSE: DOCS)

Doximity Inc. (NYSE: DOCS) distinguishes itself in the telehealth sector by operating a platform that connects an impressive 80% of U.S. physicians, boasting over 360,000 active telehealth providers. This vast network indicates a significant market presence with a potential $4.3 billion market in telehealth. As of March 7, 2024, Doximity’s stock price stood at 27.700.00, with Argus Research giving it a ‘HOLD’ rating and a target price of $29.00. The company’s financial health is robust, with Q3 2024 earnings revealing a revenue of US$135.3m, marking a 17% increase from the previous year. The EPS (TTM) is 0.67, and the PE Ratio (TTM) is 41.34, reflecting a stable financial position.

Key Financial Highlights:

• Revenue Growth: Doximity reported a revenue of $113.6 million in Q2 FY2024, an 11% increase year-over-year. The company’s revenue guidance for FY2024 is between $460 million and $472 million.
• Profitability Metrics: The net income margin stood at 27% with an adjusted EBITDA margin of 48% in Q2 FY2024. These figures underscore Doximity’s efficient operation and profitability.
• User Engagement: Over 550,000 unique providers utilized Doximity’s tools in Q2 FY2024, highlighting the platform’s widespread adoption among healthcare professionals.

Doximity’s stock forecast and price prediction for 2025 and 2030 show a bearish sentiment with a 5-day prediction indicating a decrease to $24.51. However, the company’s revenue and earnings growth forecasts remain positive, with an 8.4% and 9.7% annual growth rate, respectively. Despite concerns over returns on capital, Doximity’s intrinsic value is estimated to be 29% above its current share price, suggesting potential for future growth. The platform’s extensive network, including 80% of U.S. doctors and 50% of all NPs and physician assistants, coupled with its comprehensive services like teleconsultations and medical file transfer, positions Doximity as a key player in the telehealth industry, albeit trading at a high multiple due to high growth expectations.

iRhythm Technologies Inc. (NASDAQ: IRTC)

iRhythm Technologies Inc. (NASDAQ: IRTC) emerges as an intriguing investment in the telehealth sector, with its stock currently priced at $107.370 as of March 12, 2024. The company’s financial trajectory is particularly noteworthy, with a 1-year forecast predicting a significant jump to $212.12316101474 and an even more ambitious 5-year forecast aiming for $903.953. Despite a downtrend over the past year, the predictive analysis, incorporating variables like volume changes and market cycles, suggests a bullish outlook.

Key Financial and Analytical Highlights:

• Stock Forecasts:
  • 1-year target: $212.12316101474 (97.563% increase)
  • 5-year target: $903.953
• Investment Potential:
  • A $100 investment could potentially grow to $197.563 by March 2025.
  • Analyst consensus deems IRTC a strong buy, with a price target of $130.17, indicating a 21.33% increase.
• Revenue Growth:
  • Forecasted revenue growth of 18.57% surpasses both the industry (8.31%) and US market averages (10.32%).
  • Expected revenue for 2024: $492,681,000, with projections rising to $810.1M in three years (+64.43%).

Despite the absence of specific return on equity and assets forecasts, iRhythm Technologies’ robust revenue forecasts and strong buy recommendations from analysts underscore its potential as a lucrative addition to investment portfolios. The company’s focus on disrupting the traditional cardiac monitoring market through innovations in artificial intelligence further solidifies its promising position within the telehealth industry.

Hims & Hers Health Inc. (NYSE: HIMS)

Hims & Hers Health Inc. (NYSE: HIMS) has captured attention with its impressive performance in the telehealth sector. Here’s a detailed look at its recent achievements and future projections:

• Recent Performance and Subscribers:
  • Year-To-Date (YTD) Increase: Achieved a 41% bump.
  • Year-Over-Year (YOY) Revenue Increase: A significant 57% rise to $226.7 million in Q3 2023.
  • Subscribers: The platform boasts 1.4 million subscribers, indicating strong consumer trust and market penetration.
• Stock Price and Analyst Ratings:
  • Current Stock Price (as of March 11, 2024): $14.47.
  • Short-Term Forecast: Expected to rise to $15.14 by March 20, 2024, and $23.73 by July 2024.
  • Long-Term Projections: Predicted to reach $23.92 by the end of 2024, with an ambitious target of $50 by 2034.
  • Analyst Consensus: Rated as a Moderate Buy, with 11 analysts offering insights. The consensus price target stands at $13.45, with forecasts ranging from $10.00 to $17.00.

Hims & Hers Health Inc.’s journey in the telehealth industry showcases a blend of robust growth, strategic market positioning, and positive future outlooks. Its ability to significantly increase its subscriber base while maintaining an upward trajectory in stock prices reflects its potential as a worthy consideration for investors eyeing the telehealth sector.

Conclusion

Through a comprehensive analysis of the leading companies in the telehealth sector for 2024, including Teladoc Health Inc., CVS Health Corp., Doximity Inc., iRhythm Technologies Inc., and Hims & Hers Health Inc., this article has highlighted the remarkable financial and strategic milestones these companies are set to achieve. The trajectory of these stocks illustrates the vast potential and rapid evolution within the telehealth industry, characterized by significant revenue boosts, strategic expansions, and technological advancements, catering to an ever-growing demand for virtual healthcare services.

The burgeoning market valuation, coupled with the projections for remarkable growth, not only underscores the significance of telehealth as a vital component of the future healthcare landscape but also presents compelling investment opportunities. As we observe the expanding capabilities, increased adoption, and innovative approaches to virtual wellness by these key players, it is evident that the telehealth sector is positioned for a trajectory of sustained growth and development. Stakeholders are encouraged to consider the strategic implications and potential impacts of investing in this dynamic and evolving industry.

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