We recently published a list of 10 Best Telehealth Stocks to Buy Now. In this article, we are going to take a look at where Teladoc Health, Inc. (NYSE:TDOC) stands against other best telehealth stocks to buy right now.

Overview of the American Telehealth Industry

According to Grand View Research, the telehealth market size in the US was valued at $42.54 billion in 2024. It is expected to grow at a notable compound annual growth rate of 23.8% between 2025 and 2030. Some of the primary factors supporting this growth include the rising demand for remote healthcare services, large-scale penetration of connected home services, and high internet usage. In addition, the global adoption of smartphones, advancements in technology, and a surge in government initiatives to develop telehealth programs are also supporting market growth.

Since the cost of in-person healthcare provision is increasing in the country, telehealth presents a significant opportunity in the healthcare sector. According to McKinsey, around $250 billion of the present US healthcare spending can be virtualized. This includes training for medical professionals, regular check-in appointments for chronic diseases, psychiatric care, and more, all administered and accessed through each individual’s preferred device.

READ ALSO: 10 Best Mid Cap Biotech Stocks to Buy and 12 Best Diagnostics Stocks to Invest In Right Now.

Are Healthcare Stocks a Safe Haven Amid Tariff Turmoil?

Some experts view medical, healthcare, and big pharma stocks as immune from trade carnage, making them a safe haven amid the uncertainty brought about by Trump’s tariffs. Since Trump’s tariffs and macroeconomic uncertainties are causing significant market volatility, we discussed the potential of healthcare stocks as a safe haven amidst the ongoing turmoil in a recently published article on the 10 Best Medical Stocks to Buy According to Billionaires. Here is an excerpt from the article:

On April 8, Mizuho Securities America healthcare sector strategist Jared Holz opined that managed care, particularly the government-centric names, are somewhat safe as they are insulated from tariffs as US-based companies. In fact, the economic slowdown is actually beneficial for them as they want less utilization and less patience through the system, which is how they typically beat numbers. He said that managed care is having a good day, and investors might think about owning some companies in the sector.

It is, however, a relative game, as there are several different variables at play, and investors are essentially playing a game of hopscotch in an attempt to jump from one area to another, whether it’s tariffs, drug pricing, or other public policies. He painted a similar picture for medical device stocks that are more US-centric. These two sectors thus have less risk relative to others, making them somewhat of a safe haven.

Our Methodology

We sifted through stock screeners, financial media reports, and ETFs to compile a list of 25 telehealth stocks and chose the top 10 most popular among hedge funds as of Q4 2024. The list is ordered in ascending order of hedge fund sentiment. We sourced the hedge fund sentiment data from Insider Monkey’s database.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Teladoc Health, Inc. (NYSE:TDOC)

Number of Hedge Fund Holders: 32

Teladoc Health, Inc. (NYSE:TDOC) provides virtual healthcare services and operates through BetterHelp and Teladoc Health Integrated Care segments. The BetterHelp sector covers its direct-to-consumer (D2C) mental health platform. Teladoc Health Integrated Care comprises a range of global virtual medical services, including specialty medical, expert medical services, general medical, mental health, chronic condition management, and more.

On March 7, Analyst Richard Close from Canaccord Genuity maintained a Buy rating on Teladoc Health, Inc. (NYSE:TDOC) and set a price target at $14.00. The analyst said that the company’s strategic expansion of its P360 virtual primary care and Comprehensive Weight Care program supports this rating, as it allows members who do not have GLP-1 coverage to gain access to the medication.

The company also recently announced a collaboration with Amazon.com to increase the availability of its chronic condition programs. Qualifying Amazon customers can benefit from Teladoc Health, Inc.’s (NYSE:TDOC) chronic condition management programs, such as pre-diabetes, diabetes, weight management, and hypertension, through Amazon’s Health Benefits Program.

On February 5, Teladoc Health, Inc. (NYSE:TDOC) entered into a definitive contract to acquire Catapult Health, a digital preventive care services supplier, for $65 million in cash with an additional $5 million in performance-based compensation. The company plans to improve its comprehensive care solutions by implementing Catapult Health’s patient-focused approach to personalized supportive care and at-home testing. Subject to customary closing conditions, the transaction is expected to be completed in the first quarter of 2025.

Brown Capital Management Mid Company Fund stated the following regarding Teladoc Health, Inc. (NYSE:TDOC) in its Q2 2024 investor letter:

“Teladoc Health, Inc. (NYSE:TDOC) operates a telehealth platform that provides on-demand healthcare services to its members in the US and abroad. Its solution connects consumers with physicians and behavioral health professionals who treat various conditions. The company offers its services through mobile devices, desktop, and by video or phone. Our initial excitement over Teladoc’s market-leading position, large market opportunity and compelling value proposition ran into the reality of the company’s deteriorating fundamentals. Competitive pressure, high customer-acquisition costs and poor customer retention significantly impaired the company since our initial purchase in March 2020. Additionally, questionable acquisitions and executive turnover further weighed on the business, resulting in revenue growth declining from the high-20s/low-30s to low-single-digits without any improvement in profitability. Although we pride ourselves on being patient and tolerant, it became obvious that our investment thesis was wrong, and we sold the company from the Fund.”

Overall, TDOC ranks 8th on our list of the best telehealth stocks to buy right now. While we acknowledge the potential for TDOC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TDOC but trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.