Hedgeye CEO Keith McCullough is adding Teladoc (TDOC) to the long side of Investing Ideas. Below is a brief note.
So the bulls only "buy stocks" when the Russell is 9-10% higher and sell down here? #Sweet process.
There are sectors and companies in the US economy that we like. I just don't like them at any time and price. We like both the Healthcare Sector Style (XLV) and Teledoc (TDOC) in particular.
Here's a summary excerpt from Healthcare analyst Tom Tobin's Institutional Research note this week:
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Behavior changes are likely sticky, and estimates have room to move higher. App downloads are backing off the COVID-19 surge highs, but the new run rate is settling into a higher level than pre-COVID and utilization continues to ramp. With the guidance for 2020 went to $800-$825M from the previous $695-$710M and consensus of $726M, but the real focus will turn to 2021 where we think the step up in estimates could be similar to 2020. As of 1Q20, penetration into convertible patient volume is 5.6% leaving substantial upside, even in the face of competition. Without a vaccine we do not expect consumer behavior to change and telemedicine to embed into the delivery system. Importantly guidance does not include a resurgence in COVID-19. As the economy re-opens it is as likely for employers to want a telehealth option as a risk mitigation strategy as it will be for consumers. |
Buy on red (don't chase on green),
KM
