After all the trouble that Covid caused for the med-tech sector, one innovative leader is on its way to coming back better than ever. Nothing proves that better than their recent beat-and-raise quarter.
For the March quarter, the firm earned $3.52 per share, up 31% and crushing forecasts. Analysts had expected per-share profits of $2.64, or 25 less than the actual results.
With the Covid recovery underway, the company raised guidance for the full year. It now expects growth in robotic procedures of as much as 26% for all of 2021, compared with Wall Street’s 18% forecast.
This medtech firm specializes in sophisticated gear for robotic surgeries, during Covid, a huge amount of the $1.1 trillion US healthcare market was focused on treating coronavirus cases.
That meant that elective surgeries for the fiscal year ended in March were pretty much out the window, and the companies that target them fell out of favor.
But now, all of that is in the rearview mirror.
Instead, this company just reminded tech investors of the great value proposition here by easily beating Wall Street forecasts.
With that news as a spark, the stock jumped 9.9% in a single session on May 21. It’s now back in a nice uptrend.
Coming up next month, we’re about to have a golden opportunity to see a key aspect of my investing philosophy in action.
Just because Wall Street might panic after catching a scrap of bad news doesn’t change the fundamental outlook of an investment.
There’s no better time to keep than in mind than right now, with a firm I’ve been keeping my eye on about to report earnings.
That report is giving us a chance to repeat a big win that I called back on July 26 of 2019, when I brought you a medtech leader that I still believed in, even when their stock had just gotten throttled.
Bear in mind, I made that call the day after the company lost more than 25% of its value in a single session. I still believed in them then, and I was right. Since then, they’ve offered a potential 191% return.
Over the years, I’ve found that out-of-favor tech stocks can present huge buying opportunities because, after 37 years of experience in Silicon Valley, I know the lay of the land
On August 25, 2020, I said that there was a fire sale you as a savvy tech investor could take advantage of with Teledoc Health Inc. (TDOC).
Wall Street analysts were worried about Teledoc buying Livongo Health Inc. (LVGO) and the $18.5 billion price tag. But I know this was a big move that would add to TDOC’s lead in the shift to telemedicine.
Livongo makes devices that allow healthcare providers to remotely monitor health metrics such as blood pressure, blood sugar, weight, even behavioral health. Together they allow physicians and nurses to speak to patients remotely while having the most up-to-date information on their health.
I made it clear back then that I expected Teledoc Health Inc. (TDOC) to bounce back and beat the market.
From the day shares hit a bottom on November 10 to its recent high on February 19, TDOC zoomed some 69.6%.
Over that period, it crushed the S&P 500 by a stunning 640%.
Now, history is repeating itself, and this massive profit opportunity is coming back around. The stock is grossly oversold once again, and I see a similar setup in the making as the firm disrupts the $1.3 trillion medical market.
Here’s the thing.
According to a survey from The Harris Poll, 65% of consumers surveyed plan to use telehealth services more often after the pandemic, putting paid to Wall Street’s ridiculous notion that we’re just itching to go back to the doctor’s office.
Of all the changes the ongoing coronavirus pandemic forced on us, the change in healthcare has got to be one of the most profound.
Whether we’re managing a chronic condition, like high blood pressure, say, or an acute illness like strep throat, the market demand for healthcare needs hasn’t decreased a bit, but COVID-19 has made getting in to see a primary or specialist physician a lot more complicated and, in some cases, a lot riskier.
That means telemedicine, and the broader field of digital healthcare, are the name of the game right now. The $20 billion Teledoc-Livongo merger is proof of that.