A Telehealth Stock That Could Explode in 2022
What’s up Profit Zone Gang!
In this edition, we’re going to be covering WELL Health Technologies (TSX:WELL) one of my favorite companies right now that will allow you to take advantage of a quickly growing telehealth industry.
The other day I took some time to think about how my portfolio was structured. As a result of being a big advocate for dividend investing, the majority of my holdings operate in the consumer staples, finance or real estate industries. However, I realized I was neglecting a massive industry that has a massive amount of room for improvements and technological advances. This industry was telehealth and its upside potential is larger than one would expect.
Let me explain.
Setting The Stage
The sudden COVID-19 outbreak brought upon an opportunity for healthcare companies to “reinvent the wheel”. With hospitals overpopulated and healthcare professionals overworked during the pandemic, this industry is desperately looking for new ideas and new ways of serving their patients. The pandemic gave way to digital health platforms where people can get virtual consultations without having to leave the comfort of their own homes.
Let’s face it, people will be trying to “social distance” for years to come. That’s not going away any time soon. The idea of staying away from people as much as possible is ingrained into our lives at this point. So the rising concern for keeping your distance from others has allowed digital health platforms to be adopted and grow exponentially.
“The telehealth market is projected to grow from USD $90.74 billion in 2021 to USD $636.38 billion in 2028 at a CAGR of 32.1% in the forecast period, 2021-2028” - Fortune Business Insights
Teleconsultations are cost-effective, can be done from anywhere, reduce the number of patients in hospitals who don’t physically need to be there, and are easily accessible for almost anyone across the globe.
It’s no secret that the pandemic destroyed the mental health of millions of people. Not being able to leave your house, having limited human interaction and being restricted from doing the things you love to do is harmful no matter which way you look at it. COVID-19 has had a lasting impact on mental health as a whole and it’s projected that by 2030, depression will be the leading cause of disease burden.
Healthcare professionals have seen a massive increase in the demand for their services but 1 person only has so many hours in a day.
The solution? Digitization.
What is WELL Health Technologies?
WELL Health Technologies is a company that provides digital electronic medical records software and telehealth services. They focus on acquiring disruptive companies and platforms in the healthcare space that can facilitate quicker and easier access to medical professionals.
For example, one of their platforms VirtualClinic+, which was launched just as COVID-19 hit, helps connect patients to physicians through video or a phone call. This provides accessibility to patients who may be limited in their ability to physically travel to an appointment. I’m sure you can see just how powerful this type of platform could be during a worldwide pandemic and in the years to come.
WELL Health Technologies has released new data showing a 72% increase in mental health visits in Q3 2021 compared to pre-pandemic levels. They’ve also posted that 68% of mental health visits are now occurring virtually, which is a significant number.
The company has made tons of acquisitions and investments to reinforce their commitment to the advancement of digitization for mental healthcare by acquiring a minority stake in a virtual online therapy company called Hasu Behavioural Health that offers secure online video, phone or text therapy for those who may be struggling with mental health problems like depression, relationship issues, stress, trauma or even substance abuse. The company also offers services for organizations and companies looking to provide support for their employees with easily accessible and anonymous ways to take advantage of therapy online. This allows Hasu to shift their focus away from the headaches and costs of running a brick-and-mortar practice and gives them the advantage of spending more time and money actually helping their patients.
There’s zero doubt that WELL Health Technologies is positioned very well to experience large amounts of growth and upside in the coming years.
But don’t just take my word for it, because that would be dumb. I want you to make investment choices for yourself. Gather all the information you possibly can and make an informed and educated decision based on the numbers. At the end of the day, your conviction will come from 2 things:
1) Societal trends
2) A companies historical performance
Nothing else matters.
And for that reason, I’m going to be doing a deep dive into the fundamentals of WELL Health Technologies so you can see for yourself how it’s done. By the end of this edition of The Profit Zone, you will have all the information you need to make an informed investment decision.