Digital health and healthcare technology companies operate in novel, booming sectors and offer unprecedented surge potential to equities investors looking to capitalize on the growing demand for technological solutions in the healthcare industry. The Covid-19 pandemic accelerated the adoption of digital health solutions such as online consultations, remote monitoring and digital prescriptions – on the one hand. Moreover, on the other hand, the pandemic confected fertile ground for the rise of healthcare tech stocks.
Below are three healthcare tech stocks worth buying in 2024.
Amazon (AMZN)
The U.S. tech giant Amazon (NASDAQ:AMZN) is well-known for its e-commerce business that serves millions upon millions of customers. Despite the immense profits reaped from e-commerce, Amazon has set its sights on expanding into other sectors that would complement its primary business. In 2018, for example, Amazon acquired PillPack, an online pharmacy that delivers medications to customers’ doors.
While Amazon’s strides into the healthcare sector are still in their beginning stages, there are already signs of the tech giant’s success. For example, the insurer Blue Shield of California said it would drop CVS Health’s (NYSE:CVS) Caremark, the pharmacy-benefit manager it currently uses, which negotiates drug prices and wraps in other services such as a mail-order pharmacy. Instead, Blue Shield will partner with Amazon’s pharmacy. Moreover, in 2022 Amazon acquired One Medical, which has allowed Amazon to offer virtual primary care to Amazon Prime members for a fixed subscription fee.
Amazon’s initial strides in the healthcare industry is just the beginning, and investors should expect the e-commerce giant to really shake the industry in the coming years.
Teladoc Health
Teladoc Health (NYSE:TDOC) offers a comprehensive suite of virtual care solutions, including general medical, mental health and chronic care. In recent years, the company has established itself as a leader in telehealth services with more than 90 million individuals in the United States using one or more of the company’s products and services.
However, investing in Teladoc’s shares is going to take some patience. The telehealth company’s shares have fallen more than 30% over the past 12 months. A lot of this can be attributed to its misadventure in acquiring Livongo, a digital health platform that helps people manage chronic conditions. As a result, for FY’2022, Teladoc reported a $13.4 billion goodwill impairment charge related to the plummeting value of the acquisition.
Still, Teladoc’s revenue growth remains in the double digits, albeit well-below its pandemic numbers. While growth will likely not return back to its pandemic heights, digital transformation tailwinds could continue to power solid double-digit growth for Teladoc in the quarters to follow.
Veeva Systems
Veeva Systems (NYSE:VEEV) is a cloud-based solutions provider to the life sciences industry. In particular, Veeva’s cloud solutions help healthcare companies with everything from commercial data management and content management to customer relationship management.
The industry cloud solution company has maintained double-digit revenue growth in the past few years, underscoring the growth potential of its core product. The tailwinds mentioned above could provide with many more years of record growth. Despite a tough macroeconomic environment throughout 2022 and 2023, Veeva revenue growth figures are solid, and the company is profitable on a net income basis.
Veeva shares have risen more than 24% over the past twelve months, beating the S&P500. Shares could rise further as the economy improves and rates come down.
On the date of publication, Tyrik Torres did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.