The healthcare industry has transformed in recent years, with a growing preference for telehealth and virtually activated care. And while the COVID-19 pandemic has strained the global healthcare industry, it has opened up new avenues for remote healthcare. With more and more people opting for virtual medical consultations to save time and safely meet their health needs, the telehealth market is gradually emerging as a post-pandemic winner.
While most countries are now reopening thanks to solid progress on the coronavirus vaccination front, extensive cloud-based tracking and rapid technological advancements are expected to increase demand for online consultations, boosting the market for healthcare solutions. telehealth. In addition, reduced patient wait times and cost-effective treatment options offered to consumers by telehealth could further stimulate demand for telehealth solutions. Hence, the telehealth market is expected to reach $ 559.52 billion by 2027, growing at a CAGR of 25.2%.
Given the industry’s strong growth prospects, Wall Street analysts expect key players in this area â Teladoc Health Inc. (TDOC), American Well Corporation (AMWL) and iRhythm Technologies Inc. (IRTC) âTo recover by more than 50% in the coming months.
Click here to view our health sector report for 2021
Teladoc Health Inc. (TDOC)
Based in Dallas, Texas TDOC is a virtual health service provider that operates in the United States and internationally. The company offers virtual access to care for a variety of medical subspecialties, ranging from non-urgent to episodic needs. It offers virtual health services to its customers on a business-to-business basis and to consumers directly and through distribution partners.
This month, TDOC announced a collaboration with Microsoft Corp. (MSFT) through which the company’s Solo platform for hospitals and healthcare systems will be integrated with the Microsoft Teams environment, giving doctors and patients better access to the best virtual healthcare. This collaboration is expected to enable TDOC to provide a seamless experience for physicians and patients by leveraging the artificial intelligence (AI) and machine learning expertise of both companies.
TDOC’s revenue increased 151% year-on-year to $ 453.68 million in the first quarter ended March 31, 2021. Its cash and cash equivalents increased 41.8% from their current value. a year ago to reach $ 720.10 million. Of the society Adjusted EBITDA was up 430.1% from its value a year ago to $ 56.60 million.
TDOC’s EPS is expected to increase 48.7% in the current year. A consensus revenue estimate of $ 2.01 billion for its 2021 fiscal year is an 83.6% increase over the same period last year.
Of the 20 Wall Street analysts who rated the stock, 13 rated it on buy and seven on hold. Closing yesterday’s trading session at $ 146.78, the average analyst price target of $ 231.26 represents a potential gain of 57.6%.
American Well Company (AMWL)
AMWL is a telehealth company that offers a digital healthcare delivery platform. To provide care through different modalities including video, phone and secure messaging, it provides various management tools, clinical processes, Carepoint hardware and system connections. AMWL is based in Boston.
In April, AMWL unveiled its next-generation Converge telehealth platform. The platform is intended to host and run applications created by innovators, enabling even faster progress towards digital healthcare. This should allow business customers to choose the features that matter most to them.
In the first quarter, ended March 31, 2021, AMWL’s revenue increased 7.2% year-over-year to $ 57.60 million. Its cash and cash equivalents increased 618.2% from a year ago to $ 897.18 million during that period.
The company’s EPS is expected to grow 65.6% in the current year. Analysts expect AMWL’s revenue to grow 7.2 percent year-on-year to $ 263.01 million in fiscal 2021.
Of the eight Wall Street analysts who provided ratings for the stock, three rated it Buy and five rated it Hold. A consensus price target of $ 16.58 represents a potential gain of 52.8% from its last closing price of $ 10.85.
iRhythm Technologies Inc. (IRTC)
CRTI is a digital healthcare company that provides ambulatory ECG monitoring solutions to people at risk for arrhythmia. In addition, the San Francisco-based company provides the Zio service, a cloud-based data analysis platform that combines a wireless, patch-based portable biosensor with a data analysis platform based. in the cloud to help clinicians monitor patients and identify arrhythmias.
In May, CRTI received two regulatory certifications, one for a new and improved flagship monitor design, and the other for enhanced artificial intelligence capabilities. The certifications show the company’s continued commitment to improving the patient and provider experience by investing in next-generation diagnostic capabilities across its platform.
During the first quarter ended March 31, 2021, CRTI revenue increased 17% year-on-year to $ 74.31 million. Its gross profit rose 7.1% from its value a year ago to $ 50.85 million. The company’s cash and cash equivalents increased 143.1% year-over-year to $ 137.38 million. In addition, the company’s free cash flow from investing activities increased 95.4% year-on-year to $ 117.04 million during this period.
CRTI is expected to generate 14% revenue growth for the current year. Its EPS is expected to rise 19.1% next year.
Of the seven Wall Street analysts who provided ratings for the stock, all rated Hold. Currently trading at $ 53.06, the average analyst price target of $ 81 represents a potential gain of 52.7%.
Click here to view our health sector report for 2021
TDOC stock was trading at $ 148.51 per share on Monday morning, up $ 1.73 (+ 1.18%). Year-to-date, the TDOC has fallen -25.73%, compared to a 14.10% increase in the benchmark S&P 500 over the same period.
About the Author: Pragya Pandey
Pragya is an equity research analyst and financial journalist with a passion for investing. In college, she majored in finance and is currently pursuing the CFA program and is a Level II candidate. After…