Some so-called novel coronavirus stocks have printed modest, token gains. Not health services app Teladoc Health (NYSE:TDOC). Despite taking a 5% hit on the Tuesday, April 21 session, TDOC stock has more than doubled from this year’s opening price. Naturally, the nature of Covid-19’s infectiousness has greatly expanded the company’s profile.
Although the infection rate appears to have peaked, the U.S. must still recognize some grim numbers. With almost 900,000 cases and over 50,000 dead, the coronavirus has taken its toll on both society and the economy.
But few have been as pressured as our frontline heroes, particularly the medical doctors and nurses that have worked tirelessly while most Americans have sheltered in place. As we navigate toward the other side of this pandemic, we will forever remember the extraordinary sacrifices they have made. Truly, they are the best of America.
At the same time, we must also recognize that they are human. And this is the component that really drives home the case for TDOC stock.
According to Newsweek, more than 200 doctors and nurses have perished fighting against this dreadful disease worldwide. Following a similar narrative, several medical professionals have protested President Donald Trump’s administration, along with other government authorities for the lack of personal protective equipment.
Frankly, many people find it difficult to debate these frontline workers. We are asking them to take on an almost egregious risk to tackle a deadly and still mysterious disease. And not only are they putting themselves in danger, they risk transmitting the coronavirus to their loved ones.
This is why TDOC stock has skyrocketed. With this app, medical professionals and patients can communicate without physical contact.
TDOC Stock Is Among the Most Relevant Investments Ever
From a cynical point of view, if you’re bullish on Teladoc, the present crisis is only providing more reasons for optimism. For instance, some Harvard scientists believe that social distancing protocols may be necessary until 2022.
First, many factors regarding the coronavirus remain unknown. Second and more critically, another wave of infections could spark, overwhelming already stressed medical infrastructures. As well, I would argue that we can’t afford another hard stop to the economy.
Therefore, logic dictates that social distancing is the cheapest and most effective manner of mass-scale mitigation. Obviously, if we’re shifting toward a contactless society, an investment like TDOC stock naturally benefits.
But what intrigues me the most about Teladoc is that its core business was already supremely relevant before the pandemic.
According to NBCNews.com, iatrophobia, or the fear of doctors, affects just 3% of the population. Primarily, the reason why people fear them is the anxiety over receiving bad news.
I think that figure is a little higher. Phobias are very powerful — how many of us avoid certain places or living creatures because of an irrational fear? Certainly, no one likes to think about their own mortality. Therefore, if people are willing to take extreme measures to, say, avoid bugs, it’s not unreasonable to assume they would avoid doctor visits to insulate themselves against the fear of the unknown.
Of course, these folks are placing their health and perhaps their lives in jeopardy. You don’t have to be a doctor to realize that it’s far better to address a condition earlier than later. But again, fear is a powerful de-motivator.
With Teladoc’s app-based service, those suffering from iatrophobia can receive medical advice 24/7 from the comfort of their own home. That will go a long way toward advancing collective health.
A Cost-effective Approach to Care
According to Teladoc’s website, the cost for a “visit” depends on your insurance plan. However, the company’s Everyday Care visits never exceed $49. Even at this maximum rate, when you factor in all expenses associated with visiting a doctor, this is a steal. Thus, I expect TDOC stock to continue moving higher after this pandemic fades.
As I mentioned above, I don’t think you can put a price tag on comfort and peace of mind. Especially if you suffer from iatrophobia, any reasonable premium is worth the price of admission.
And for everyone else, they must factor in all the “hidden” costs of doctor visits. I’m talking about taking time out of your schedule and wasting it in traffic. Also, when you get to the medical office, you’re not necessarily seen right away. Potentially, something relatively minor can eat away two or three hours of your workday. That’s not something to scoff at, particularly in this day and age.
Therefore, I have supreme confidence in TDOC stock. And I’m putting my money where my mouth is, consistently calling Teladoc one of my favorite stocks across all sectors for the next five years.
Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. The power of being “first” gave Matt’s readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities.