Haven’t really seen much about telehealth, so I thought I’d put my 2 cents in on what I’ve been looking at and what I’ve found. I’m not going to run through why telehealth is bigger now than it was before 2020. It’s obvious.
So, I’ve been checking out all the telehealth companies, specifically AMWL, since they’ve been booming and I’m wondering if anyone has found anything different.
Here are the players I’m looking at right now: AMWL, TDOC, CVS, ANTM; with my primary focus being on AMWL.
AMWL: Full disclosure, I’ve been heavily following them since their Q3 earnings call. Launched its IPO in Sept. 2020 where it was $18 and had a three month high of $42. Stock is currently trading just under $30, and IMO is highly undervalued. Results from Q3 show that the company had more than 1.4 million virtual visits, a 450% increase from the same period in 2019. Revenue from Q3 was $62.6 million, an 80% increase. From what I’ve been seeing, I’m expecting an increase from the Q4 results as well. I dug up some info, and it’s got an investment of $100 million from Google. Also a partnership with Cleveland Clinic, and a recently launched telepsychiatry service, so there must be something here with large interest from these companies. It’s still at an attainable price and my thoughts are, since the telehealth industry is booming, this looks like the next one to grow.
TDOC: If you don’t know, TDOC had it’s IPO in July of 2015 at $19 a share and now hovers in the $280s. TDOC’s 5-year trend shows that telehealth stocks haven’t JUST been growing because of the pandemic. TDOC has been growing for years, with a 179% stock price increase between its IPO in 2015 and November of 2019. This could be because it was the main player for so long (founded in 2002) and the only health service looking to the future of technology in health for some time. Q4 earnings aren’t yet announced, as none of the others have announced either, but I don’t know if I should bother this late in the game to invest. Short-term signals are positive.
CVS: The company started trading under the ticker we all recognize in 1996, but CVS didn’t enter the telehealth market until 2018 through a partnership with the big guy above, TDOC. CVS saw a 600% increase in its MinuteClinic virtual visits from Q1 of 2019 to Q2 of 2020. It’s got a tumultuous history, so that’s probably why it’s currently undervalued. But is it going to keep growing? It seems extremely diverse as a pharmacy and it bought out Aetna a couple years ago, so now a healthcare provider as well. But it just fell, again, so is this still a solid stock? From what I’m reading, the long-term health of the stock is still trying to find a solid footing.
ANTM: this is an independent licensee of BCBS and is the 5th largest publicly traded health benefits company in the US. Its origins go back to the 40’s as Mutual Hospital Insurance, Inc. After years of mergers and growth, it went public in 2001 and then expanded into the telehealth sphere in 2018. ANTM opened in Oct 2001 at $20.25. I’m reading that it looks like Q4 is going to have a below average return. I am seeing that some are saying that it may be undervalued but from what I’m reading the stock is in the middle of a falling trend in the short term. There are also expectations that it’s supposed to fall up to 5.57% more in the next few months.
Some thoughts: TDOC is part of the EDOC ETF which recently launched last summer. Solid ETF choice that’s seen a 28% growth in the last 3 months. We see SO MUCH about ARKK, but I’m thinking EDOC is overlooked. My thoughts: getting into EDOC to mitigate risk, and investing individually in AMWL.
TLDR: no brainer: telehealth is up, but I’m hyped on AMWL. Best-in-class technology stack, huge partner investments, incredible price upside, major revenue increases with what looks to be a positive Q4 earnings call.
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence or consult your financial professional before making any investment decision.