5 Telehealth Stocks That Have Nothing But Upside

Stocks to buy

The telehealth sector is undergoing a significant transformation, reshaping the traditional contours of medical service delivery. This innovation-driven domain is drawing attention from investors, as top telehealth stocks show potential in a rapidly expanding market. The blend of technology and healthcare in telehealth is a forward-looking movement, reshaping patient care dynamics and offering new investment avenues.

In the dazzling world of digital health, the year 2022 was significant. The telehealth market shone brightly, valued at $128.12 billion. The market is poised for a stellar ascent, forecasted to skyrocket from $142.96 billion in 2023 to a staggering $504.24 billion by 2030. This growth, marked by a robust 19.7% CAGR, highlights the sector’s burgeoning potential, as noted by Fortune Business Insights. The growth of telehealth is significant. It underscores its transformative impact on the future landscape of healthcare.

The upward trend in telehealth mirrors the evolving healthcare landscape and underscores the role of technology in enhancing medical services’ accessibility and efficiency. The market’s expansion signals a future where technology integration in healthcare promises improved patient care and greater accessibility. For investors and industry observers, the telehealth sector is a beacon of innovation and opportunity, set to redefine global healthcare standards. So, let us dive in and discover the top telehealth stocks today!

Teladoc Health (TDOC)

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Teladoc Health (NYSE:TDOC), a leader in the telehealth industry, faced notable financial challenges this year, as reflected in its year-to-date loss of 24.5%. In a dazzling twist of financial fate, the company’s revenue soared by 8%, hitting a high note of $660.2 million. However, the financial symphony hit a discordant note in terms of net income, with losses ballooning by 22.3% to a staggering $57.1 million.

The decline in profits can be attributed in part to a significant rise in operational expenses. This increase in expenses indicates the company’s investment in enhancing its operational capabilities. Amidst these financial fluctuations, a notable positive aspect was the substantial 204% increase in EBITDA, amounting to $13.8 million. The notable increase in EBITDA indicates that Teladoc Health is prioritizing sustainable profitability despite facing immediate financial hurdles.

Cash flow indicators are mixed but promising. The net change in cash surged by 288.9% to $71.8 million, and free cash flow increased by 64.2% to $98.8 million, showing the company’s cash-generating ability.

Cathie Wood’s ARK Innovation ETF (NYSEARCA:ARKK), led by Cathie Wood, showed confidence in Teladoc by purchasing 261,829 additional shares, valued at nearly $4.5 million. This increased Ark Invest’s holdings to about 12.4 million shares, worth approximately $210 million, highlighting Teladoc’s potential in the telehealth market and the industry’s overall growth prospects.

American Well (AMWL)

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In the dynamic world of top telehealth stocks, American Well (NYSE:AMWL) stands out despite its challenging year-to-date performance, with a return loss of approximately 58%. Amidst this backdrop, Amwell’s third quarter of 2023 showcased a mixed bag of results. The company’s financial saga unfolds with a dramatic twist: a whopping $61.9 million in revenue juxtaposed against a staggering net loss of $137.1 million. Yet, amidst this financial rollercoaster, a beacon of hope shines through in the form of an improved adjusted EBITDA. It marks a positive stride in the intricate dance of corporate finance.

Strategically, Amwell has made commendable strides, particularly with its recent collaboration with the U.S. Defense Health Agency. This partnership, powering the Digital First initiative, is a testament to the potential and capabilities of Amwell’s Converge platform. Impressively, Amwell achieved 50% of its visits on this platform ahead of schedule. Such developments are vital for Amwell’s position among the best telehealth stocks.

Looking ahead, Amwell’s 2023 financial guidance remains cautiously optimistic. It expects revenue within the range of $257 to $263 million, with a slightly adjusted EBITDA loss projection. This adjustment is due to increased investment in Research and Development, especially for the Defense Health Agency project. This forward-thinking approach could strengthen Amwell’s standing among top telehealth stocks, despite the current financial challenges.

As American Well Corp navigates through these turbulent times, its strategic initiatives and adaptability could well position it for a rebound, making it a noteworthy player in the telehealth industry.

Hims & Hers Health (HIMS)

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As an investor-focused writer, exploring the recent developments at Hims & Hers Health (NYSE:HIMS) offers valuable insights, particularly in the telehealth sector. Despite a challenging year with a 28% decline, HIMS stands out in the telehealth industry. Its recent third-quarter results show a robust revenue surge to $226.7 million, a commendable 57% year-over-year increase. This growth, coupled with an impressive subscriber count of 1.4 million, underscores HIMS’s expanding market footprint.

Furthermore, Hims & Hers Health’s strategic advancements signal a promising future. The company’s foray into the weight loss market by the end of 2023 marks a significant diversification. This move, alongside innovative initiatives in cardiovascular health and MedMatch technology, positions HIMS as a top telehealth stock to watch. Its growth trajectory in varied health sectors illustrates a dynamic approach to healthcare solutions.

Financially, Hims & Hers Health exhibits resilience and confidence. The initiation of a $50 million share repurchase program reflects its financial stability. Moreover, the company’s optimistic revenue guidance for the full year 2023, between $868 million and $873 million, aligns with its progressive business model. This financial outlook, paired with a solid EBITDA projection, strengthens HIMS’s position among the best telehealth stocks.

In conclusion, Hims & Hers Health demonstrates a compelling case for investors seeking growth in the telehealth arena. Its diverse healthcare initiatives and strong financial performance, combined with strategic market expansions, position it as a top contender in the telehealth sector. For investors eyeing innovative healthcare stocks, HIMS presents a noteworthy option, reflecting both growth potential and industry leadership.

Doximity (DOCS)

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Doximity (NYSE:DOCS), a standout in telehealth stocks, navigates a challenging market with a 25% year-to-date loss. Despite this, it remains a key player among top telehealth companies. The firm’s revised revenue guidance anticipates 25% year-over-year growth, demonstrating resilience despite a slower pace compared to its previous fiscal year’s 66% surge. Doximity’s fiscal 2024 second quarter results highlight its robust presence in a competitive sector.

Central to Doximity’s offering is its telehealth app, lauded for its simplicity and HIPAA-compliant security. This innovation has led to widespread adoption, with over 80% of U.S. doctors using the platform. Doximity Dialer Pro extends the company’s reach, offering diverse telemedicine services, including specialized plans for free clinics and students. Its 2023 State of Telemedicine Report underscores the platform’s significant impact on patient access and healthcare management, indicating its crucial role in the telehealth landscape.

Doximity’s adaptability and comprehensive solutions position it firmly among the best telehealth stocks. While facing financial fluctuations, its commitment to accessible, secure telehealth services ensures its relevance in a transforming healthcare sector. For detailed insights, Doximity’s official website and reports offer extensive information on its offerings and industry impact.

CVS Health (CVS)

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Despite a 26% dip in year-to-date returns, telehealth giant CVS Health Corp (NYSE:CVS) shined in 2023’s first quarter, boosting revenue to an impressive $85.3 billion—a striking 11% rise from last year.

This impressive growth, however, contrasts with a recent downward revision in its financial outlook. CVS Health’s expansion into primary care is evident, with two major acquisitions enhancing its hybrid care capabilities. Its latest venture, CVS Health Virtual Primary Care, integrates various healthcare services on a single digital platform.

This innovation aims to revolutionize primary care, offering a seamless experience for both patients and providers. Moreover, CVS Health’s investment in virtual care, including significant funds in telepsychiatry and Carbon Health, underscores its commitment to advancing telemental health services. With a patient satisfaction rate of 95% in its telehealth services, CVS Health stands out as a top contender in the telehealth sector, poised to shape the future of virtual healthcare.

On the publication date, Faizan Farooque did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.

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