We’re not getting close to cracking the COVID-19 code, and that will understandably make you nervous as an investor, but even more so as a human being. This is a terrifying pandemic. However, it is undeniable that some companies are flourishing in the new normal.
Livongo Health (NASDAQ: LVGO), Platoon (NASDAQ: PTON)and Teladoc (NYSE: TDOC) They are three of the most popular stocks of 2020, which soared during the outbreak with annual gains of 195%, 96% and 135%, respectively, at the close of Wednesday. It is a fair bet that they will continue to prosper as the coronavirus crisis unfolds.
There are 34.2 million people with diabetes in the US, that’s more than 10% of the country, and another third of the population has prediabetes.
We know that people with diabetes can help their results through exercise and by adopting healthier lifestyles, but having someone perpetually watching the situation and proactively pushing them in the right direction was not feasible until Livongo Health pioneered what called advanced health signs. Using connected glucose meters, data scientists and machine learning provide active training with every puncture. Instead of relying on medical advice in the office, which could be months away, Livongo knows when to step forward and push a member in the right direction when blood sugar levels start to rise.
Livongo platform works. The insurance plans and self-insured companies offering Livongo are seeing an average annual savings of $ 1,908 in reduced medical costs per member, and glucose levels are improving dramatically in just a couple of months on the platform. Not surprisingly, Livongo’s user base has doubled to 328,000 members in the first quarter. Now, the company is trying to catch the rays in a bottle again by using applied health cues to control other chronic conditions like high blood pressure and depression, and in weight control.
Peloton shares hit another record high on Wednesday, and it’s easy to see why the market is sweating for the company behind high-end home workouts. Crowded spinning classes and sweaty gyms aren’t safe these days, and Peloton allows people with deep pockets to spend four figures on a stationary bike or treadmill that’s wirelessly connected to interactive workouts that stream on monitors connected.
The number of Peloton connected fitness subscribers has skyrocketed 94% to 886,100 over the past year. Rotation is at a minimum of four years, and growth has accelerated to the new normal. Peloton’s revenue increased 66% in the first quarter, but its guidance for the quarter ending next week requires a 128% increase on the top line at the midpoint.
Livongo isn’t the only one raising the bar when it comes to healthcare. Teladoc defends telemedicine, using its growing network of medical professionals who can provide health consultations through videoconferencing. There are natural limitations to online consultation, but with the evolution of device technology and Teladoc’s wide range of categories, it’s easy to see why people are excited about the ability to seamlessly visit a healthcare professional without having to deal with crowded waiting rooms and dividing work hours. time for a process that finally only takes minutes.
Following in the footsteps of Livongo and Peloton, Teladoc is watching his fan base expand dramatically these days. The telehealth visits of 8 million to 9 million that Teladoc expects to complete this year are approximately double the 4.1 million sessions it completed in 2019.
Livongo, Peloton and Teladoc are exploding in popularity through the COVID-19 crisis. They are among the best growth stocks on the market right now, proving that they are immune to the pandemic and therefore may deserve to join your portfolio.