2 Telehealth Stocks That Could Boom in This Pandemic

It’s time for virtual healthcare and telehealth services to shine. Keep an eye on WELL Health Technologies (TSX:WELL) and TELUS (TSX:T)(NYSE:TU).

| More on:

Social distancing and a shortage of healthcare talent has compelled the world to reconsider how we deliver medical care. Fortunately, the technology that helps you stay in touch with family and work from home during this pandemic could also help you get critical care if needed. 

Telehealth startups are connecting potential patients with medical practitioners through video conferences and mobile apps. The ability to speak to a professional over the phone within minutes is a game-changer for Canada’s healthcare system. Two publicly listed companies are at the forefront of this revolution. 

Telus Health

Telecommunications giant TELUS (TSX:T)(NYSE:TU) was far ahead of the curve. The company launched TELUS Health, its digital healthcare subsidiary, in 2007. That’s right, TELUS has been a major telehealth player for over a decade. 

The subsidiary now offers electronic medical record management services for clinics and healthcare professionals and group health benefits for organizations. It also offers a consumer telehealth app called Babylon. The app could gain more traction during this crisis. 

The company is leveraging its virtual healthcare infrastructure to assist Canadians with medical support during the ongoing COVID-19 pandemic. Users can check their symptoms and connect with a pharmacy or clinic while isolating at home. These services should see an uptick as more people recognize the value of virtual healthcare during this crisis. 

The healthcare subsidiary doesn’t contribute much to TELUS’s annual revenue yet. However, the company expects it to drive margins and growth in the near future, as the number of users expands exponentially. 

WELL Health

Telehealth startup WELL Health Technologies (TSX:WELL) has been investing in tech-enabled clinics and a sophisticated medical data platform for years. The company already serves 8,200 doctors across 1,446 clinics in British Columbia. It also owns and manages 20 clinics in the province. 

As the pandemic erupted, WELL Health deployed resources early to expand its telehealth portfolio. The company invested $5.94 million in telehealth startup Insig Corporation and launched its own telehealth service called VirtualClinic+. The company also launched the Automated COVID-19 Triage Tool (ACTT), an automated phone, SMS and web-based healthcare platform for Canadians. 

Unsurprisingly, the business is rapidly accelerating. Sales have tripled over the past year, and the gross margin has widened to 33.5%. The company also achieved a small profit in the last three months of 2019 (roughly $216,067). Hong Kong’s richest man, Li Ka-Shing, doubled down on the stock this year and now owns a significant stake in the firm. 

WELL Health is one of the most underrated healthcare startups in the country. Add it to your watch list if you’re looking for a speculative bet on the cutting edge of healthcare technology. 

Foolish takeaway

It’s time for virtual healthcare and telehealth services to shine. There’s never been a better opportunity for investors to bet on the obvious future of our medical system. 

Telus stock offers a more robust proxy for this revolution. Its telehealth subsidiary is well funded and could drive tremendous growth in the years ahead. Meanwhile, WELL Health could be multibagger if it secures a dominant position in this rapidly evolving industry. Watch this space closely. 

Good luck and stay safe.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Vishesh Raisinghani owns shares of WELL Health Technologies.  

More on Coronavirus

A airplane sits on a runway.
Coronavirus

3 Fresh Stocks I’m Likely Buying in 2025

I am likely buying Air Canada (TSX:AC) stock in 2025.

Read more »

RRSP Canadian Registered Retirement Savings Plan concept
Coronavirus

Canadian RRSP Stocks to Buy Now for Retirement

Alimentation Couche-Tard Inc (TSX:ATD) is a quality retirement stock.

Read more »

A train passes Morant's curve in Banff National Park in the Canadian Rockies.
Coronavirus

Retirees: What Rising Inflation Means for Your CPP Payments

If you aren't getting enough CPP, you can consider investing in stocks and ETFs. Canadian National Railway (TSX:CNR) is one…

Read more »

Coronavirus

Air Canada Stock Is Starting to Get Ridiculously Oversold

Air Canada (TSX:AC) has been beaten down to absurd lows.

Read more »

Coronavirus

Should You Buy Air Canada Stock While it’s Below $18?

Air Canada (TSX:AC) stock is below $18. Should you invest?

Read more »

Illustration of data, cloud computing and microchips
Stocks for Beginners

3 Canadian Stocks That Could Still Double in 2024

These three Canadians stocks have been huge winners already in 2024, but still have room to double again in the…

Read more »

Aircraft Mechanic checking jet engine of the airplane
Coronavirus

Can Air Canada Stock Recover in 2024?

Air Canada (TSX:AC) stock remains close to its COVID-19 era lows, even though its business has recovered.

Read more »

A airplane sits on a runway.
Coronavirus

3 Things to Know About Air Canada Stock Before You Buy

Air Canada stock continues to hover below $20 despite the sharp rise in travel demand seen across the industry. What's…

Read more »