If Online Healthcare Grows, This Company Wins
If “telehealth” gains more acceptance, you must consider Teladoc Health.
A “true” small cap stock typically carries a market cap of anywhere between $300 million and $2 billion. It’s a simple calculation of shares outstanding multiplied by the stock price.
But with a current market cap of $3.94 billion, Teladoc Health (NYSE: TDOC) is simply too interesting to pass up – which is why I’m making an exception and featuring it as your newest Small Cap Blaster here in Trade of the Day.
Here’s the scoop...
Founded in 2002 and headquartered in New York, Teladoc Health provides “telehealth” services (virtual healthcare) in 450 medical subspecialties such as flu and upper respiratory infections, cancer, and congestive heart failure.
Teladoc Health provides these services through mobile devices, the internet and video, allowing the company to canvass 100 countries worldwide.
In fact, Teladoc Health is currently the global leader in virtual healthcare.
After all, just about everything you can think of can now be done online. Heck, you can now get approved for a mortgage online – in less than five minutes. But the healthcare industry has been slow to adapt. That’s where Teladoc Health comes into play.
For $45 per visit, Teladoc Health is attempting to provide its 38 million members with round-the-clock, on-demand healthcare appointments using voice or video chat.
So far, the process has been slow to gain acceptance, as Teladoc Health lost $97 million last year. That’s why the company’s shares are currently moving lower. However, Wall Street is expecting profitability by 2020 – and Teladoc Health forecasts 20% to 30% top-line growth in the years ahead.
Action Plan: If healthcare follows the path of so many other industries – and the global consumer market starts accepting the idea of filling healthcare needs online – then the opportunity for a first-mover advantage is squarely in Teladoc Health’s favor. Keep the company on your radar in the weeks and months ahead for a possible real-time trading opportunity.