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Will Teladoc's (TDOC) New Service Seize the Mental Health Space?
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Teladoc Health, Inc. (TDOC - Free Report) has come up with a new mental health service named ‘myStrength Complete’. The service will bring together a complete range of mental health solutions right from apps to clinicians. This will make it convenient for patients to get timely help, tailored to their needs and terms.
Bundling different kinds of services into one relieves patients of navigating through multiple websites, mobile apps or virtual care platforms. This comprehensive care will attract more patients and also retain them for long.
With this offering, Teladoc is targeting the mental health care market, which is set to expand. Rising psychological issues are widely seen across all age groups but more so among the millennials. Per a recent Market Insight Reports study, the global behavioural/mental health market size is expected to reach $245 billion, seeing a CAGR of 2.5% during the 2020-2027 forecast period.
Teladoc is leveraging its last year’s acquisition of Livongo to launch this mental healthcare service. Notably, Livingo provides behavioral health care program.
Teladoc can be a key beneficiary of the mental health realm, which is evolving with time and an overall progressive outlook. Earlier, mental illness was tabooed as a close-door topic. But people are now more willing to discuss about their stress, depression and trauma and openly seek help for the same. Consultation from therapists and psychiatrists virtually is the most preferred option as it keeps treatment close guarded. Full flexibility is another attraction.
The ongoing pandemic exacerbated mental issues induced by the combination of health, economic and social challenges weighing on the country. Telemedicine came to rescue as 92% of the total 2,253 U.S. consumers surveyed online found some improvement during the crisis hour. More than one-third patients reported significant improvement during their virtual treatment.
myStrength Complete will be available to consumers through their health plans or employers this July. Initial buyers of myStrength Complete currently include a major Blues plan and a Fortune 100 employer.
Year to date, the stock has shed 27.1% of value compared with its industry’s decline of 6.3%.
This underperformance is due to investors’ growing wariness about the dwindling demand curve for telehealth services, which was buoyant when the pandemic was at peak. Teladoc witnessed windfall gains in revenues, membership and visits as people resorted to its high-end virtual care network to seek medical health remotely.
The stock movement has also been battered due to fierce competition in the virtual healthcare space with Amazon.com, Inc. (AMZN - Free Report) targeting the space. Also, American Well Corporation (AMWL - Free Report) raised money from public in an IPO last year to expand its operations. Moreover, Cigna Corp. (CI - Free Report) bought the telehealth platform MDLive, which is a rival of Teladoc.
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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Will Teladoc's (TDOC) New Service Seize the Mental Health Space?
Teladoc Health, Inc. (TDOC - Free Report) has come up with a new mental health service named ‘myStrength Complete’. The service will bring together a complete range of mental health solutions right from apps to clinicians. This will make it convenient for patients to get timely help, tailored to their needs and terms.
Bundling different kinds of services into one relieves patients of navigating through multiple websites, mobile apps or virtual care platforms. This comprehensive care will attract more patients and also retain them for long.
With this offering, Teladoc is targeting the mental health care market, which is set to expand. Rising psychological issues are widely seen across all age groups but more so among the millennials. Per a recent Market Insight Reports study, the global behavioural/mental health market size is expected to reach $245 billion, seeing a CAGR of 2.5% during the 2020-2027 forecast period.
Teladoc is leveraging its last year’s acquisition of Livongo to launch this mental healthcare service. Notably, Livingo provides behavioral health care program.
Teladoc can be a key beneficiary of the mental health realm, which is evolving with time and an overall progressive outlook. Earlier, mental illness was tabooed as a close-door topic. But people are now more willing to discuss about their stress, depression and trauma and openly seek help for the same. Consultation from therapists and psychiatrists virtually is the most preferred option as it keeps treatment close guarded. Full flexibility is another attraction.
The ongoing pandemic exacerbated mental issues induced by the combination of health, economic and social challenges weighing on the country. Telemedicine came to rescue as 92% of the total 2,253 U.S. consumers surveyed online found some improvement during the crisis hour. More than one-third patients reported significant improvement during their virtual treatment.
myStrength Complete will be available to consumers through their health plans or employers this July. Initial buyers of myStrength Complete currently include a major Blues plan and a Fortune 100 employer.
Year to date, the stock has shed 27.1% of value compared with its industry’s decline of 6.3%.
This underperformance is due to investors’ growing wariness about the dwindling demand curve for telehealth services, which was buoyant when the pandemic was at peak. Teladoc witnessed windfall gains in revenues, membership and visits as people resorted to its high-end virtual care network to seek medical health remotely.
The stock movement has also been battered due to fierce competition in the virtual healthcare space with Amazon.com, Inc. (AMZN - Free Report) targeting the space. Also, American Well Corporation (AMWL - Free Report) raised money from public in an IPO last year to expand its operations. Moreover, Cigna Corp. (CI - Free Report) bought the telehealth platform MDLive, which is a rival of Teladoc.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
AccessZacks Top 10 Stocks for 2021 today >>