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Philips Inks Telehealth Partnership Deal With American Well

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Koninklijke Philips N.V. (PHG - Free Report) and American Well recently signed a telehealth partnership deal for mutually providing virtual care solutions for professional and consumer healthcare. Through this multi-year agreement, American Well’s premium virtual care capabilities will be combined with the professional and consumer digital health solutions of Philips.

Over the last month, shares of this Zacks Rank #3 (Hold) company yielded a return of 3.6%, marginally outperforming 3% growth recorded by the sector.

The company is poised to grow on the back of acquisitions, stronger innovation, and elevated healthcare and fitness spending. However, headwinds such as unfavorable currency-translation impact or business uncertainty in the United States might dent near-term prospects.

Inside the Headlines

American Well is a prominent telehealth provider of the United States. The company helps connect the care professionals with millions of consumers via video consults. Moreover, American Well ensures that the users are able to access services on a 24-hour basis. Notably, individuals are able to use these services even during absence of primary care physician, with the assistance of remotes. American Well is currently expanding its business across the globe.

Philips provides state-of-the-art consumer professional programs and devices, along with powerful analytics solutions. The company noted that its existing product line will strengthen on the back of American Well’s partnership deal. On the basis of this deal, the company will be able to provide services in various domains such as clinical intervention, data collection and care provision.

Per the deal, Philips Avent uGrow parenting application will be combined with the telehealth service of American Well. The telehealth inclusive version of Philips Avent uGrow will soon be downloadable in both Google Play and App Store.

Moreover, Philips will also reinforce American Well’s portable telehealth software development kit (SDK). This will help integrate video visits natively and seamlessly in different types of digital healthcare solutions of Philips.

Also, as per the deal, Philips will join the clinical amenities marketplace of American Well- American Well Exchange. Through this, the branded telehealth programs of Philips can be easily reallocated to employers, health plans and also the health systems within the ecosystem of American Well.

Stocks to Consider

Some better-ranked stocks in the same sector are listed below:

Analog Devices, Inc. (ADI - Free Report) currently sports a Zacks Rank of 1 (Strong Buy). The company’s earnings per share (EPS) are projected to be up 10.40% in the next three to five years. You can see the complete list of today’s Zacks #1 Rank stocks here.

Applied Materials, Inc. (AMAT - Free Report) flaunts a Zacks Rank of 1. The company’s EPS is predicted to rise 12.67% over the next three to five years.

Aehr Test Systems (AEHR - Free Report) carries a Zacks Rank of 2 (Buy), at present. The company’s EPS is estimated to be up 20.00% during the same time period.

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