Teladoc Health is facing a huge demand from patients as they opt to be diagnosed virtually, to avoid human contact amid the coronavirus outbreak.
As we all adjust to the new world we live in and practise social distancing, it is clear that health care systems around the globe are facing increased pressure. Virtual health care is becoming increasingly popular and helping those too scared to go visit a doctor surgery. One stock that is showing huge growth is Teladoc Health (NYSE: TDOC) which has more than doubled year to date as it offers practitioners a safer way to treat patients.
Why is virtual health so important?
Teladoc has been offering its services since 2002 and provides health care in a virtual world every day, all year. This means that people who are unwell don’t have to wait in crowded doctor offices, but instead can be seen in the comfort of their own home. Medical experts can speak with patients through either telephone or video calls and evaluate symptoms such as coughs, sneezing, and also chronic conditions and behavioral issues.
Even before the coronavirus pandemic Teladoc was in hot demand and posted sales of $553 million in 2019, up 32% on the year prior. In addition, at the end of 2019 over 40% of Fortune 500 companies used Teladoc’s platform, including Bank of America (NYSE:BAC) and T-Mobile (NASDAQ:TMUS).
Coronavirus has increased the demand
Considering people are trying to distance themselves from others and avoid catching the coronavirus, it is no surprise that a virtual health stock like Teladoc has increased in demand. The company has also revealed it provides more than 20,000 medical visits in the U.S each day which was up by 100% in March alone.
Teladoc has 36.7 million members so far and that number is expected to grow as the coronavirus makes remote health more viable. To help the company even more, Teladoc’s shares soared after a record $2 trillion stimulus bill was announced in late March. This would mean increased funding for telehealth companies by around $200 million. Also, Congress passed billions of dollars in emergency funding to fight the virus and loosened the restrictions for telehealth services.
Is Teladoc a good investment right now?
Teladoc is set to release its second-quarter earnings next week and it is expected to post a big increase in revenue. Teladoc is definitely a great long-term buy as the coronavirus changes the way we do a number of things.
The company is in a great position as it offers a service that will continue to protect people from catching the virus at a doctor’s surgery. Also, the company has done the groundwork and set the standard if another medical pandemic sweeps the world again. Teladoc is the global leader and has little competition in the space as it is the only publicly traded company within the telehealth realm.
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