In this article, we discuss 5 stocks to watch as Cathie Wood’s fund starts to rebound. If you want to read about other hot stocks in Wood’s portfolio, go directly to Cathie Wood’s Fund Starts to Rebound: 10 Stocks to Watch.
5. Teladoc Health, Inc. (NYSE:TDOC)
Number of Hedge Fund Holders: 36
Gain in Share Price Over Past Month as of July 14: 37.00%
Teladoc Health, Inc. (NYSE:TDOC) markets virtual healthcare services and is headquartered in New York. Regulatory filings reveal that ARK owned over 20 million shares of Teladoc Health, Inc. (NYSE:TDOC) at the end of March 2022 worth $691 million, representing 4.09% of the fund’s total portfolio value. Teladoc provides virtual health services for conditions such as diabetes, hypertension, chronic kidney disease, cancer, congestive heart failure, and mental health disorders.
On July 7, Piper Sandler analyst Jessica Tassan maintained an ‘Overweight’ rating on Teladoc Health, Inc. (NYSE:TDOC) stock with a price target of $42, noting the firm was on track to deliver an inline second quarter print in the chronic care business.
At the end of the first quarter of 2022, 36 hedge funds held stakes worth $1.9 billion in Teladoc Health, Inc. (NYSE:TDOC), compared to 39 in the previous quarter with positions worth $2.4 billion.
In its Q1 2022 investor letter, RiverPark Funds, an asset management firm, highlighted a few stocks and Teladoc Health, Inc. (NYSE:TDOC) was one of them. Here is what the fund said:
“Teladoc Health, Inc. (NYSE:TDOC) is the largest telehealth provider in the US and has recently begun to expand internationally. TDOC’s platform enables an ever-expanding list of patient-doctor interactions (including those for primary health care, mental health issues and chronic condition management) to transition from an on-site visit to one that can be done remotely with full video- based interaction. TDOC provides its platform of services on both a business-to-business and direct-to-consumer basis, through monthly subscription-based relationships. For its core business-to-business clients, the company contracts with a wide range of entities, including large scale employers (the company currently contracts with over 50% of the Fortune 500), health plans, health systems, and medical insurance companies, which currently cover more than 50 million members. For these customers, the company provides a win-win-win, as patients spend no time traveling and less time waiting, doctors are more efficient seeing more patients in less time, and payers (employers and plan sponsors) save money while being able to offer a highly popular additional benefit for their employees. This B to B market is projected to be a +$100 billion market opportunity and Teladoc Health, Inc. (NYSE:TDOC) is the clear global market leader. For its direct-to- consumer clients, the company provides a growing suite of services for individuals to have affordable access to on-demand and scheduled medical services, for which their current insurance does not provide reimbursement (such as extended mental health counseling).
Although the company has been growing steadily for well over a decade, the business has transformed over the past few years as the COVID pandemic caused a significant increase in the demand for virtual healthcare. In addition, the company’s 2020 acquisitions of Livongo, the leader in virtual chronic condition management, and InTouch a competitive telehealth platform, materially broadened the company’s product offerings. At its recent analyst day, management guided to 25-30% top line growth for each of the next three years, exiting 2024 with more than $4 billion in annual revenue. The company also anticipates expanding margins by 100-150 basis points per year in each of the next three years, while still accelerating its investments in marketing and R&D. As with many of our recent purchases, we took advantage of the decline in the company’s shares (down a breathtaking 70% from its 2021 high of almost $300 per share) to establish a small position in Teladoc Health, Inc. (NYSE:TDOC).”
