10 Best Performing Healthcare Stocks So Far in 2025

4. Teladoc Health, Inc. (NYSE:TDOC)

YTD Performance: 57.65%

Number of Hedge Fund Holders: 32

Teladoc Health, Inc. (NYSE:TDOC) provides virtual healthcare services and operates through two segments: BetterHelp and Teladoc Health Integrated Care. The BetterHelp sector covers its direct-to-consumer (D2C) mental health platform. Teladoc Health Integrated Care comprises a range of global virtual medical services, including specialty medical, expert medical services, general medical, mental health, chronic condition management, and more.

The company recently announced a collaboration with Amazon.com to increase the availability of its chronic condition programs. Qualifying Amazon customers can benefit from Teladoc Health, Inc.’s (NYSE:TDOC) chronic condition management programs, such as pre-diabetes, diabetes, weight management, and hypertension, through Amazon’s Health Benefits Program.

On February 5, Teladoc Health, Inc. (NYSE:TDOC) entered into a definitive contract to acquire Catapult Health, a digital preventive care services supplier, for $65 million in cash with an additional $5 million in performance-based compensation. The company plans to improve its comprehensive care solutions by implementing Catapult Health’s patient-focused approach to personalized supportive care and at-home testing. Subject to customary closing conditions, the transaction is expected to be completed in the first quarter of 2025.

Brown Capital Management Mid Company Fund stated the following regarding Teladoc Health, Inc. (NYSE:TDOC) in its Q2 2024 investor letter:

“Teladoc Health, Inc. (NYSE:TDOC) operates a telehealth platform that provides on-demand healthcare services to its members in the U.S. and abroad. Its solution connects consumers with physicians and behavioral health professionals who treat a range of conditions. The company offers its services through mobile devices, desktop, and by video or phone. Our initial excitement over Teladoc’s market-leading position, large market opportunity and compelling value proposition ran into the reality of the company’s deteriorating fundamentals. Competitive pressure, high customer-acquisition costs and poor customer retention significantly impaired the company since our initial purchase in March 2020. Additionally, questionable acquisitions and executive turnover further weighed on the business, resulting in revenue growth declining from the high-20s/low-30s to low-single-digits without any improvement in profitability. Although we pride ourselves on being patient and tolerant, it became obvious that our investment thesis was wrong, and we sold the company from the Fund.”