Back in April, I’d discussed how investors could turn $20,000 into $1 million with smart investments to kick off this decade. The COVID-19 pandemic has cast a spotlight on the healthcare systems in Canada and around the world. Investors should be paying close attention. Those who get in early can capitalize off the revolutionary developments in one of the most explosive sectors. Today, I want to look at a telehealth stock that is worth holding for decades.
Why investors should seek out telehealth stocks
The advancement of technology is changing many of the ways in which we live. It should come as no surprise that it is also having a profound impact on healthcare. The COVID-19 pandemic has accelerated changes in a variety of industries. In medicine, it has spurred a revolution in digital services and telehealth. Telehealth is emerging as one of the many modern methods that will cater to the needs of patients outside traditional healthcare settings.
Fortune Business Insights recently projected that the global telehealth market would grow from $61 billion in 2019 to $559 billion by 2027. This would represent a CAGR of 25% during the forecast period. Canadian investors should be chomping at the bit to gain exposure to this exciting space. Fortunately, there is a top stock on the TSX that fits the bill.
This TSX-listed stock has erupted in 2020
In late July, Fool contributor Stephanie Bedard-Chateauneuf picked WELL Health Technologies (TSX:WELL) as a stock that could turn $6,000 into $60,000. The company was uplisted to the TSX in 2020. Its shares have soared 230% in 2020 as of close on August 18.
WELL Health owns and operates a portfolio of primary healthcare facilities. Why does it qualify as a top telehealth stock? The company released its second-quarter 2020 results on August 11. WELL Health achieved record quarterly revenues of $10.5 million. This was primarily due to its successful shift to telehealth. This included significant contributions from its VirtualClinic+ and phone consultations.
The COVID-19 pandemic has played a massive role in the acceleration of telehealth services. WELL Health’s quarterly telehealth visits increased sequentially by more than 730% to more than 124,800 visits. Its VirtualClinic+ has onboarded more than 1,000 healthcare practitioners since its launch in March. Adjusted EBITDA at WELL Health veered towards break even territory, stopping short due to elevated levels of marketing expenses linked to the launch and support of VirtualClinic+.
WELL Health also delivered digital service revenue growth of 1,212% to $2.34 million. This telehealth stock has erupted in 2020 on the back of its remarkable performance in the face of the COVID-19 pandemic.
Should you buy WELL Health stock today?
This telehealth stock has rightfully generated considerable excitement. It came close to achieving profitability in Q2 2020. However, its shares last had an RSI of 79. This puts the stock in technically overbought territory. Value investors may want to wait for a pullback to jump in. However, this telehealth stock is well worth snagging in 2020 and holding onto for the long term.
