Are These Health Care Stocks On Your Watchlist?
If you are into big trends, look for health care stocks. In fact, telehealth or virtual health care was a trend even before the coronavirus pandemic. But back then it was more of a novelty instead of actual practicality. Then came Covid-19, which brought global health care systems down to their knees. As more cases are recorded globally, healthcare services that are not related to Covid-19 are taking a back seat. That said, the bright spot amid the current pandemic is the rise of telehealth for health care stocks.
Now, many people feel it’s safer to talk to a doctor virtually than to visit a clinic or hospital. This is due to concerns of contracting infections. It is a seismic shift for the healthcare business. The current pandemic has resulted in the increased usage of telehealth services worldwide. With many countries still under lockdown, telehealth remains a good alternative. This is especially true in countries that are struggling to cope with the coronavirus. That said, is this a good time for investors to hunt for the best telehealth stocks to trade?
Top Health Care Stocks To Trade #1: Phunware
Shares of Phunware Inc (PHUN Stock Report) are up 134.43% today. The company confirmed a deal with Hewlett Packard Enterprise (HPE Stock Report), making it one of the most bullish stocks in the market this week. This came a few days after the company released its financial report. The new partnership with HP could establish Phunware as an increasingly important player in the telemedicine space right now.
“We are thrilled to partner with a worldwide leader in enterprise mobility, all while expanding the reach and distribution of our digital front door solution with HPE’s global customer base,” said Alan S. Knitowski, President, CEO and Co-Founder of Phunware.
Telehealth Market Holds Massive Opportunities
This ascending demand for remote medical expertise is boosting the telehealth market. According to MarketsandMarkets, the global telehealth market is projected to reach $55.6 billion by 2025, from $25.4 billion in 2020, representing a CAGR of 16.9% during the forecast period.
The new partnership signifies a major milestone for Phunware’s telemedicine journey. With the integration of feature-rich mobile applications from both companies, it completely eliminates the pain of having to manage dozens of point solutions. What’s more, it could simultaneously offer patients a far more simplistic, cohesive and integrated healthcare experience. Would the new telemedicine interface make Phunware one of the best telehealth stocks to trade?
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Top Health Care Stocks To Trade #2: Teladoc
This health care stock needs no introduction. Teladoc Inc (TDOC Stock Report) is the world leading provider of virtual healthcare. It currently dominates 75% of the market, offers more than 450 medical specialties, and has completed 4.1 million visits worldwide in 2019.
TDOC stock had no trouble attracting investors, who have turned to companies that are resilient or can benefit from the Covid-19 pandemic. Just this year alone, the stock has gone up more than 100%. While some question the accuracy and reliability of Teladoc’s services, investors who took a chance at it made some money.
The only question is whether TDOC stock is still a good buy despite surging more than 100% this year. Some investors may avoid shares that are trading at all-time highs. That said, we shall also not ignore the rising demand for remote healthcare services. Considering that the company still expects more growth, we can’t conclude that the stock price has peaked, can we?
Top Health Care Stocks To Trade #3: Nutanix
Nutanix (NTNX Stock Report) is a leader in enterprise cloud computing. The NTNX stock finishes the day 12.1% higher. This came after the hyperconvergence infrastructure specialist forged a deal to help provide telehealth services for a community health center.
Delaware Valley Community Health (DVCH) said it had chosen Nutanix to provide a private cloud infrastructure. This is to enable 75% of its workforce to work remotely and offer telehealth services to patients. While Nutanix isn’t a telehealth stock to start with, the new partnership increases its involvement in the telehealth space. As a result, the health center can now drastically reduce their average log-in time for electronic medical records, from 171 to 19 seconds. This would improve the efficiency of the operations, while saving time for doctors and other users. Today’s deal with DVCH shows that Nutanix could capitalize on the telehealth opportunity indirectly. Prospective investors can pay attention to the management commentary in the earnings report next week. It could give us more indication about the company’s future plans with telehealth. That said, NTNX stock remains one of the telehealth stocks to watch in May.