Below is a chart and brief excerpt from today's Early Look written by Healthcare analyst Tom Tobin.
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This new Post-COVID US Medical Economy will have winners and losers. While telemedicine is leading to new models to deliver medical care service such as One Medical and 98point6, it will also diminish the need for physical infrastructure such as medical office buildings. The doctor's office is migrating into our home with the adoption of remote patient monitoring equipment such as blue tooth enabled scales, thermometers, and blood pressure cuffs, enabled by companies such as Masimo, Tytocare, Kinsa, and Livongo. Immertec enables a surgeon to train in immersive virtual reality environments. Some like Babylon are paving the way for algorithms for AI-enhanced physicians. Will CVS shed its brick-and-mortar skin and deploy the health technology innovations it's trying to fold into its model fast enough? We have our own suspicions, but at a minimum, it is a valuable question to answer. We believe we are at the start of one of the most innovative and disruptive periods the US Medical Economy has ever seen. The investing landscape will see some companies transform and thrive, while others will fade away. Entirely new industries are emerging, and fortunes will be made, and perhaps lost, along the way. Hand waving and fantastic stories of the future doesn't get anywhere without understanding Macro, and who better to have than the Hedgeye Macro Team at your back. While the quantitative methods get us to the Sector and Style factor level, these signals can be overwhelmed by fundamentals at the individual stock level. Our 2020 innovation has been to build deploy a quantitative bridge between Macro and Fundamentals. |
