In the near term, stocks seem to head in whatever direction the market is going. That is because on a daily basis, sentiment is driven by choices. During a longer time frame, the company’s possible earnings power will decide performance. However, when a sector is in a state of transition, the uncertainty may create volatility that can last years. That seems to be the case right now.

The healthcare business has changed a lot in the past ten years. And while some major players attempt to reinvent their company, new participants reinvent their processes with the customer in mind. It has caused wild changes in share prices as firms change places in the race to lead parts of the $3.8 trillion industry.

Teladoc

Teladoc’s revenue grew by an amazing 108% during the first nine months of 2021, during the same time period in 2020. So, the company’s earnings have increased substantially from what it was at the peak of the covid pandemic, even though most of society has returned from the pandemic and most people are back to doing school, social, and work activities in person. Also, overall visits to its platform jumped by a shocking 59% during the initial nine months of this year, compared with the initial nine months of last year. Meanwhile, the firm is expecting that it will almost double its entire-year 2021 revenue from last year’s revenue.

In fact, stock market analysts believe the stock has a peak upside possibility of over 70% during 2022. If you are looking for a top healthcare-based ETF that you can purchase and keep for many years, and that is trading at a great bargain right now, Teladoc could be a compelling investment that is definitely worth looking into.

GoodRx

The past few months have brought in a large amount of profits for GoodRx investors, with the share price up around 42% against the S&P 500, which is up around 7%.

The GoodRx brand keeps becoming more popular as consumers are learning about and subscribing to its discount services. GoodRx users have saved an average of 79% off store prices In 2020, and over half of prescriptions filled while using GoodRx costs less than the average insurance copays for the top 100 medications.

During the second quarter, GoodRx revealed they had 6 million monthly active customers, growing by 36% year over year. Earnings was $176.6 million, expanding 43% year over year.

Beyond the consumers, pharmaceutical businesses use the GoodRx market to make their products known and provide discounts. The second quarter revenue from drug creation programs and telehealth rose by 136% to reach $17.4 million. This is an indication of a second source of growth and diversification of GoodRx income streams.

On the second quarter earnings call, GoodRx expected a 40% earnings growth during the third quarter. It’s scheduled to present Q3 earnings on November 10, so we should have another upcoming opportunity to gauge how it has grown the company.  Every indication is pointing to excellent future possibilities for GoodRx as it continues to grow its services, value, and subscribers in the prescription drug sector.

Author: Blake Ambrose

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