As the coronavirus from China spreads to other parts of the world, panic has rippled through benchmark indices. Over the past two days, the Dow Jones shed more than 1,800 points. Nevertheless, one company, Teladoc Health (NYSE:TDOC), bounced higher on Tuesday, by a significant amount. In fact, TDOC stock gained 3.6%.
I find neither event surprising. Honestly, this is creating an opportunity for fundamentally sound equities — something I’ve asserted for a long time.
As for TDOC stock, this is an investment where coronavirus proves the underlying long-term bullish thesis is sound. As you probably know, Teladoc is an app-based network that connects patients to medical doctors and licensed professionals. Furthermore, Teladoc is accessible 24/7: whenever you have a problem, you can reach out to your phone or smart device and receive professional guidance.
As I’ll discuss below, the convenience factor has always ranked highly for reasons to buy TDOC stock. But the coronavirus adds urgency to this argument.
And on the other side of the desk, medical professionals would appreciate you using Teladoc’s services. That way, if you show symptoms of the coronavirus, the proper specialists can care for you with minimal public exposure to further spread the virus. It’s a win-win for all involved.
Digitalization Is Finally Impacting Healthcare
While the coronavirus is an interesting short-term catalyst, it’s not the primary reason to invest in TDOC stock. Viruses, natural disasters, geopolitical calamities and hostilities — though tragic, and often dramatic for the market, these circumstances come and go. But digitalization? That’s here to stay, permanently.
For years, I’ve guided private investors to consider the bigger picture. Typically, we see the impact of digitalization in the e-commerce sector, as we saw with Amazon (NASDAQ:AMZN). Concurrently, companies like Apple (NASDAQ:AAPL) have facilitated consolidation of multiple products and functionalities in one platform.
Essentially, we’re hurling toward an on-demand society. It’s only a matter of time before the broader healthcare industry adopts this mentality.
As I mentioned above, the convenience factor is a strong catalyst for TDOC stock. It’s also economically synergistic. Consider that today, Americans are working longer hours than previous generations. In many cases, we are taking our work home with us. Perhaps the greatest impediment is that we are commuting longer distances for our job.
Simply put, we have no time. Therefore, quick and easy access to medical professionals enhances our well-being and our productivity.
Another tailwind for TDOC stock is the opening of new growth channels. There are many reasons why people don’t see a doctor when they should. One of those stems from a condition known as iatrophobia or the fear of doctors.
According to NBC News, iatrophobia only affects around 3% of the U.S. population. Statistically, that’s great news for our overall health. However, I have an inkling that iatrophobia is far worse than is presently realized.
Let’s face it: no one really enjoys going to the doctor. And even for those who don’t find doctors frightening, finding a healthcare provider whose schedule and location fit your life can be a drawn out process in and of itself. But with Teladoc, you can comfortably access healthcare guidance anywhere, encouraging potentially life-saving consultations.
TDOC Stock to Enjoy a Long Upside Pathway
For those who are still not convinced on Teladoc’s potential, they often cite competitive concerns as a deterrent. Granted, other tech firms can come in and disrupt the company’s momentum. Still, I don’t think this will cause significant damage to TDOC stock.
I say this because Teladoc has first-to-market advantage. More importantly, they’re doing something with it rather than resting on their laurels. For instance, the company landed a partnership deal with health insurance provider UnitedHealth Group (NYSE:UNH). Obviously, this opens up Teladoc’s footprint through UNH’s patient network. The deal may inspire other insurance providers to jump aboard.
Also, Teladoc is expanding into Canada, with a focus on small- and mid-sized companies. Particularly, Canadian small businesses may be better able to compete with larger rivals in terms of attracting talented employees through flexible health benefits.
These initiatives not only advance the growth narrative for Teladoc, they solidify the brand name. That’s a tough obstacle to disrupt, which is another reason I’m bullish on TDOC stock.
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.
