Top Performing Telehealth Stocks

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Telehealth boomed during the pandemic as patients met with health professionals through virtual appointments. The telehealth trend has been on the upswing since the pandemic as both sides see the convenience of scheduling virtual appointments instead of meeting in person. Telehealth stocks allow investors to strengthen their portfolios through this trend. Investors who want exposure to telehealth may want to buy these top telehealth stocks.

Quick Look at the Top Performing Telehealth Stocks:

Deep Dive

Telehealth stocks give you exposure to a growing industry, but some companies are better than others. These are some of the top telehealth stocks on the market.

1. Teladoc Health Inc. (NYSE: TDOC)

Teladoc Health is a global leader in whole-person virtual care that gives everyone in the world access to the best healthcare.

2. Doximity Inc. (NYSE: DOCS)

Doximity is a profitable digital platform for U.S. medical professionals. The company’s medical network includes over 80% of U.S. physicians across various specialties. The company aims to exceed $1 billion in annual revenue by 2028. The company also aims to generate $500 million to $506 million in 2024.

3. CVS Health Corp. (NYSE: CVS)

The company owns the CVS Pharmacy retail chain, Aetna and other brands.

4. iRhythm Technologies Inc. (NASDAQ: IRTC)

iRhythm Technologies shares have been volatile. The company creates digital healthcare products that help patients and medical professionals detect diseases before they grow. This knowledge can help patients and medical professionals devise a plan to prevent the disease from growing and stop it in its tracks.

5. Hims & Hers Health Inc. (NYSE: HIMS)

Hims & Hers Health sells prescriptions and over-the-counter drugs online.

Pros

Investing in telehealth stocks can help with portfolio diversification and give you exposure to a growing industry. Telehealth became mainstream during the pandemic, and some people would prefer to stay home than drive to a health professional. Healthcare is going digital, and telehealth stocks let investors capitalize on this trend.

Where to Buy

If you want to invest in telehealth stocks, you will need a broker. Some stock brokers are better than others, but these are some of the top choices.

How to Choose

It is important to consider several actors before investing in the telehealth market. Conducting your due diligence in these key areas can make you feel more confident about your investments and increase the likelihood of making profitable investments.

Company's Market Position and Competitive Advantage

Some telehealth companies are better positioned than others to capitalize on the trend. Companies need capital, technology and other resources to gain market share. Investors should see how companies are innovating and monitor their revenue growth rates to gauge changes to the company’s market share.

Financial Performance and Revenue Growth

Revenue growth helps investors assess if a company is reaching more people and can charge more for its products and services. Net income growth indicates a company’s sustainability. A company with high revenue growth and increasing net losses will have to adjust to stick around for the long run.

Partnerships and Collaborations with Healthcare Providers

When smaller telehealth companies establish partnerships with large healthcare companies, it gives their solutions extra credibility. Those partnerships can also introduce new revenue streams for the company. If no one is willing to work with a telehealth company, it may be a bad sign for the company’s technology and future.

Innovation and Investment in Technology

Telehealth companies can make great strides in the industry through investments in new technology. Any innovation can put a telehealth company ahead of the competition and make it more desirable for patients and medical professionals. 

Frequently Asked Questions

Best Telehealth Stocks Methodology

The best telehealth stocks methodology involved looking for stocks with exposure to telehealth. The preference was to select profitable companies. Unprofitable companies were filtered for high revenue growth and progress with reducing net losses.