Ryan Stancil,
Editor
April 8, 2021
Editor's Note: Today we bring you Part III of our four-part series extracted from my latest report, "Healthcare in a Post-COVID World: Four Profitable Trends to Watch".
If you missed Part I and Part II, just click here and here respectively.
Please keep an eye out tomorrow for the last chapter.
Enjoy.
— Ryan
"Healthcare in a Post-COVID World:
Four Profitable Trends to Watch"
PART III
Telemedicine
Telemedicine is something that became commonplace during the pandemic and is set to play a part in healthcare after.
Not only does this technology allow people showing symptoms of any illness to see a doctor without risk of infecting anyone else, but it can also allow patients to see doctors they might not be able to see otherwise because of distance or other logistical limitations.
Besides those benefits, telemedicine has shown to improve attendance of appointments, meaning that patients were able to get treatment they might have missed otherwise because of outside circumstances.
In addition, telemedicine provides the benefit of doctors and other health professionals being able to treat more patients in the same time frame because those patients don’t have to drive to the doctor’s office in order to receive their care.
As more people get vaccinated and infection cases drop, telemedicine is poised to expand in order to provide services beyond your standard medical checkups and diagnoses.
Therapy and programs for mental wellbeing were already mentioned, but when you think about the different types of medical professionals who are out there, you can see what other ways this technology can be used.
Nutrition counseling, addiction counseling, and skincare advice are just three areas where specialists can connect with patients and offer them guidance. Likewise, telemedicine technology can allow a primary care doctor to connect with a specialist and ask questions related to a mutual patient’s care, resulting in better outcomes for the patient.
These are just a few of the benefits of telemedicine, but more are sure to emerge when the technology becomes more widespread. With all of the convenience it provides and the effectiveness it has shown over the past year, it’s hard to imagine that it will be going anywhere. Instead, it’s far more likely that it will become a regular tool used by doctors to get more patients the care they need.
Few companies have benefited from this increased need for telemedicine more than Teladoc Health Inc. (NYSE: TDOC). Founded in 2002, this company provides telehealth services as well as AI and analytics. It provides on-demand services through telephone and video conferencing software as well as mobile apps. It's one of the largest telemedicine companies in the U.S. and is active in over 130 countries with over 20 million members.
While the company has enjoyed steady business over the past year, its price has pulled back some in recent months. In November 2020, it called for losses in the next quarter due to costs associated with its recent merger with Livongo, a company specializing in digital disease management. Analysts adjusted their price targets lower while keeping a buy rating, but the broader market only seemed to pay attention to that first part. All the better to get in at a lower price.
When the next quarterly report came in February, the story repeated. Those projected losses came to fruition and the stock sold off — despite the company’s increase in revenue — but has held steady since.
These appear to be short bumps, as the company has the resources and name recognition to seize the opportunity presented by the increased use of telemedicine in a post-COVID world. That makes it the one to watch in its particular space.
Keep your eyes open,
Ryan Stancil
Editor, Daily Profit Cycle
Ryan Stancil is an editor and regular contributor to Daily Profit Cycle. He’s been active in the financial publishing industry for more than half a decade, offering insights and commentary on technology and geopolitics to help readers make sense of the constantly changing landscape and how it affects their investments. His readers appreciate his "tell it as it is" writing style, where he always offers a fresh new perspective on what's happening in the market and leaves nothing unsaid.