In this article, we will look at the 10 Best Telehealth Stocks to Buy Now.
Overview of the American Telehealth Industry
According to Grand View Research, the telehealth market size in the US was valued at $42.54 billion in 2024. It is expected to grow at a notable compound annual growth rate of 23.8% between 2025 and 2030. Some of the primary factors supporting this growth include the rising demand for remote healthcare services, large-scale penetration of connected home services, and high internet usage. In addition, the global adoption of smartphones, advancements in technology, and a surge in government initiatives to develop telehealth programs are also supporting market growth.
Since the cost of in-person healthcare provision is increasing in the country, telehealth presents a significant opportunity in the healthcare sector. According to McKinsey, around $250 billion of the present US healthcare spending can be virtualized. This includes training for medical professionals, regular check-in appointments for chronic diseases, psychiatric care, and more, all administered and accessed through each individual’s preferred device.
READ ALSO: 10 Best Mid Cap Biotech Stocks to Buy and 12 Best Diagnostics Stocks to Invest In Right Now.
Are Healthcare Stocks a Safe Haven Amid Tariff Turmoil?
Some experts view medical, healthcare, and big pharma stocks as immune from trade carnage, making them a safe haven amid the uncertainty brought about by Trump’s tariffs. Since Trump’s tariffs and macroeconomic uncertainties are causing significant market volatility, we discussed the potential of healthcare stocks as a safe haven amidst the ongoing turmoil in a recently published article on the 10 Best Medical Stocks to Buy According to Billionaires. Here is an excerpt from the article:
On April 8, Mizuho Securities America healthcare sector strategist Jared Holz opined that managed care, particularly the government-centric names, are somewhat safe as they are insulated from tariffs as US-based companies. In fact, the economic slowdown is actually beneficial for them as they want less utilization and less patience through the system, which is how they typically beat numbers. He said that managed care is having a good day, and investors might think about owning some companies in the sector.
It is, however, a relative game, as there are several different variables at play, and investors are essentially playing a game of hopscotch in an attempt to jump from one area to another, whether it’s tariffs, drug pricing, or other public policies. He painted a similar picture for medical device stocks that are more US-centric. These two sectors thus have less risk relative to others, making them somewhat of a safe haven.
With these trends in view, let’s look at the 10 best telehealth stocks to buy now.
A doctor wearing a face mask utilizing modern telemedicine equipment as part of a telehealth software.
Our Methodology
We sifted through stock screeners, financial media reports, and ETFs to compile a list of 25 telehealth stocks and chose the top 10 most popular among hedge funds as of Q4 2024. The list is ordered in ascending order of hedge fund sentiment. We sourced the hedge fund sentiment data from Insider Monkey’s database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Telehealth Stocks to Buy Now
10. Talkspace, Inc. (NASDAQ:TALK)
Number of Hedge Fund Holders: 24
Talkspace, Inc. (NASDAQ:TALK) operates and develops a technology platform that connects patients and licensed mental health professionals through video, audio, and messaging. On April 3, William Blair analyst Ryan Daniels maintained their bullish stance on the company and gave it a buy rating due to various positive factors.
The analyst said that Talkspace, Inc.’s (NASDAQ:TALK) marketing investments and strategic sales increase are key factors supporting this rating. These investments support the company’s recent expansions in MA coverage and Medicare, along with the establishment of new military partnerships. The analyst anticipates this strategic move to boost the company’s future growth and expand its market presence.
He further opined that although the increase in spending is expected to have a slight effect on the adjusted EBITDA projections in H2 2025, the overall annual target will remain unaffected. The expected strong financial performance in H2 2025 aligns with Talkspace, Inc.’s (NASDAQ:TALK) management’s guidance, justifying the Buy rating and bolstering confidence in the company’s trajectory. The company ranks tenth on our list of the 10 best telehealth stocks to buy now.
9. GoodRx Holdings, Inc. (NASDAQ:GDRX)
Number of Hedge Fund Holders: 27
GoodRx Holdings, Inc. (NASDAQ:GDRX) offers a consumer-focused digital healthcare platform that provides free consumer access to convenient medical provider consultations through telehealth, reduced prices for brand and generic medications, and extensive healthcare research and information. It takes the ninth spot on our list of the best telehealth stocks to buy now.
On March 3, CNN reported that Mizuho Securities analyst Steven Valiquette noted that the company’s market share in the prescription discount segment underwent growth, and its new CEO identified a stronger than expected value proposition for retail pharmacies. This is expected to support GoodRx Holdings, Inc. (NASDAQ:GDRX) in forging future contracting opportunities with retailers.
According to the analyst, the company’s Manufacturer Solutions segment is also expected to be a key growth driver. Growth in contracted brands is anticipated to drive a 20% growth in 2025. However, despite these positive indicators, GoodRx Holdings, Inc.’s (NASDAQ:GDRX) earnings per share expectations for 2025 and 2026 remain the same, aligning with market expectations. EBITDA and revenue guidance for 2025 also coincides with Wall Street estimates, reflecting stable growth.
8. Teladoc Health, Inc. (NYSE:TDOC)
Number of Hedge Fund Holders: 32
Teladoc Health, Inc. (NYSE:TDOC) provides virtual healthcare services and operates through BetterHelp and Teladoc Health Integrated Care segments. 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.
On March 7, Analyst Richard Close from Canaccord Genuity maintained a Buy rating on Teladoc Health, Inc. (NYSE:TDOC) and set a price target at $14.00. The analyst said that the company’s strategic expansion of its P360 virtual primary care and Comprehensive Weight Care program supports this rating, as it allows members who do not have GLP-1 coverage to gain access to the medication.
The company also 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 US and abroad. Its solution connects consumers with physicians and behavioral health professionals who treat various 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.”
7. Doximity, Inc. (NYSE:DOCS)
Number of Hedge Fund Holders: 38
Doximity, Inc. (NYSE:DOCS) develops and operates an online platform for medical professionals. Its cloud-based software allows physicians and healthcare professionals to collaborate with their colleagues, conduct virtual patient visits, coordinate patient care, manage their careers, and stay on top of the latest medical news. It offers Hiring, Marketing, and Productivity Solutions to health systems, pharmaceutical manufacturers, medical recruiting firms, and other healthcare companies. Its Productivity Solutions segment comprises on-call scheduling, telehealth, and AI-assisted medical correspondence tools that help clinicians streamline their workflow.
Doximity, Inc. (NYSE:DOCS) anticipates the pharma healthcare professionals (HCP) digital market to grow approximately 5% to 7% and plans to grow ahead of the overall market. Its record engagement and strong competitive standing position it to attain this objective.
The company also reported impressive fiscal Q3 2025 results, resulting in soaring bullish sentiments for the company. Its net income for fiscal Q3 2024 grew 57% year-over-year to $75.2 million, while net profit for the first nine months rose by 50.2% year-over-year to $160.7 million. Revenue for fiscal Q3 2025 also grew by 24.6% year-over-year, reaching $168.6 million. Doximity, Inc. (NYSE:DOCS) expects this momentum to continue and anticipates revenue for the full fiscal year ending March 31, 2025, to settle between $564.6 million and $565.6 million. It ranks seventh on our list of the best telehealth stocks to buy right now.
6. Hims & Hers Health, Inc. (NYSE:HIMS)
Number of Hedge Fund Holders: 38
Hims & Hers Health, Inc. (NYSE:HIMS) operates a telehealth consultation platform that connects healthcare professionals to consumers, allowing access to medical care for sexual health, mental health, dermatology, and primary care.
The company estimates a notable 87% to 94% year-over-year revenue growth for fiscal Q1 2025, reaching up to $540 million and up from 69% in fiscal Q4 2024. It also expects an EPS of $0.11. This growth momentum highlights Hims & Hers Health, Inc.’s (NYSE:HIMS) direct-to-consumer model that allows expedited data collection, product iteration, and patient feedback loops that boost growth and improve outcomes. The company thus holds a strategic edge due to this data and AI-driven personalization.
In addition, Hims & Hers Health, Inc. (NYSE:HIMS) announced its entry into peptide manufacturing in February 2025, which marks an early move into the GLP-1 trend. Production is anticipated to start around 2026, positioning the company to offer personalized peptide therapies, likely to be guided by AI.
Hims & Hers Health, Inc. (NYSE:HIMS) also has US-based manufacturing, which means its growth trajectory is not impeded by tariff concerns or macroeconomic headwinds. The company appears positioned to thrive in this volatility, supported by its resilient operations, inelastic demands, and cost-saving advantages. According to our list, it is the sixth-best telehealth stock to invest in. ClearBridge Small Cap Growth Strategy stated the following regarding Hims & Hers Health, Inc. (NYSE:HIMS) in its Q1 2025 investor letter:
“We continued to generate a number of compelling new ideas, adding five new investments that we still held at quarter end: Glaukos, Rocket Lab USA, Karman Holdings (through its IPO), Archrock, Hims & Hers Health, Inc. (NYSE:HIMS) and Geron.
Hims & Hers is a healthcare IT services company providing a consumer telehealth platform across a variety of men’s and women’s health categories, including weight loss, dermatology, and mental health. With an integrated experience, strong brand recognition, and a convenient stigma-free value proposition to consumers, the company is seeing robust revenue growth while improving profitability.”
5. Zoom Communications Inc. (NASDAQ:ZM)
Number of Hedge Fund Holders: 48
Zoom Communications Inc. (NASDAQ:ZM) provides a communications and collaboration platform. Its Zoom for Healthcare offering provides pharma-biotech, physicians, and healthcare providers a secure telehealth platform for collaboration, innovation, and virtual care. The Zoom Workplace for Healthcare add-on provides healthcare-specific AI capabilities that improve the platform’s experience, such as specialized lexicon through healthcare dictionaries, improved effectiveness with personal coaching, and extended knowledge through access to data sources.
In a report released on March 20, Catharine Trebnick from Rosenblatt Securities maintained a Buy rating on Zoom Communications Inc. (NASDAQ:ZM) and set a price target of $95.00. The company ranks fifth on our list of the best telehealth stocks to buy now.
It also reported steady fiscal Q4 2024 results, with revenue growing 3.3% year-over-year and reaching $1.18 billion. Zoom Communications Inc.’s (NASDAQ:ZM) AI-powered solutions resulted in a 7.3% increase in the number of customers, generating over $100,000 in trailing 12-month revenue. The company’s EPS surpassed expectations of $1.35, reaching $1.41. For fiscal year 2026, the company estimates total revenue in constant currency between $4.8 billion and $4.81 billion.
4. Humana Inc. (NYSE:HUM)
Number of Hedge Fund Holders: 64
Humana Inc. (NYSE:HUM) provides health insurance services and virtual care and telehealth coverage to its members, ranking its as the fourth-best telehealth stock to invest in. Its operations are divided into Insurance and CenterWell segments. The CenterWell segments offer pharmacy solutions, primary care, and home solutions operations. Analysts are bullish on the stock. Since the beginning of April, Morgan Stanley, Baird, Truist, Barclays, and Mizuho have raised their price targets on the company, and it was initiated with a buy at Guggenheim and Wells Fargo.
On March 25, Bernstein analyst Lance Wilkes also maintained a Buy rating on Humana Inc. (NYSE:HUM) and set a price target of $313.00. The analyst said the company is well-positioned to benefit from the stabilizing trends emerging in the recovering Medicare Advantage (MA) and Medicaid margins. This stabilization is expected to decelerate utilization rates to normal levels, making the current valuation attractive for investors.
The analyst also pointed out several emerging catalysts that could positively affect Humana Inc.’s (NYSE:HUM) future performance, including utilization data from hospitals and managed care organizations (MCOs) that are anticipated to dissipate concerns about margin pressure, margin recovery signs in MA and Medicaid, and policy uncertainty reduction. Overall, the analyst has an optimistic outlook on the company’s future, supporting the Buy rating. It takes the fourth spot on our list of the top telehealth stocks to buy right now.
Artisan Mid Cap Value Fund stated the following regarding Humana Inc. (NYSE:HUM) in its Q4 2024 investor letter:
“We were fairly active in Q4, adding four stocks to the portfolio. Our largest new purchase was Humana Inc. (NYSE:HUM), a leading US-managed healthcare company. After a few years of benign costs, mainly related to lower utilization trends during COVID in which the managed care industry enjoyed expanding profits and strong growth, utilization has ticked higher, driving up costs. Due to the timing of annual negotiated repricing for Medicare Advantage (MA) plans, Humana is unable to adjust pricing higher until 2025. In the interim, this is problematic for earnings. Naturally, this has weighed on Humana’s stock price. In the latest quarter, revenues were up 10%, but profits were restrained due to higher utilization. This was mostly anticipated, but given the limited visibility into pricing for the upcoming year, investors remain on edge. Further negative news for Humana came in early October when the company announced that preliminary data provided by the Centers for Medicare & Medicaid Services (CMS) showed that the percentage of Humana’s members enrolled in higher quality MA plans had fallen, which would impact government bonus payments. Humana is working with CMS to appeal the process as the company believes there were potential errors; however, this introduces risk to 2026 and 2027 margin targets. The stock was downabout15%inQ3 and fell another 8% through mid-October after the news regarding the CMS ratings around the time of our initial purchase. Like the market, we appreciate Humana’s current challenges, but we believe the longer-term drivers for the business remain intact.”
3. Elevance Health, Inc. (NYSE:ELV)
Number of Hedge Fund Holders: 73
Elevance Health, Inc. (NYSE:ELV) offers telehealth services to its customers, reporting in 2024 that the company conducted more than 800,000 virtual visits in 2023. This health company operates through the following segments: Health Benefits, CarelonRx, Carelon Services, and Corporate and Other. The Health Benefits segment offers a range of health plans and services, while the CarelonRx segment manages pharmacy services. The Carelon Services segment offers various healthcare-related services by integrating behavioral, physical, pharmacy, and social services.
On April 18, Leerink Partners analyst Whit Mayo reiterated a Buy rating on Elevance Health, Inc. (NYSE:ELV) and set a price target of $463.00. The analyst expressed confidence in the company’s full-year estimates, which remain unaffected despite the ongoing investor concern regarding Medicaid margin recovery and cost trends.
The company also has solid operations. It reported $45.0 billion in operating revenue in fiscal Q4 2024, reflecting an increase of $2.5 billion, or 6%, compared to the prior-year quarter. Operating income for the year reached $175.2 billion, up $5.0 billion, or 3%. This growth was attributed to higher premium yields in Elevance Health, Inc.’s (NYSE:ELV) Health Benefits segment, growth in CarelonRx product revenue, and acquisitions undertaken in 2024.
Artisan Select Equity Fund stated the following regarding Elevance Health, Inc. (NYSE:ELV) in its Q4 2024 investor letter:
“Elevance Health, Inc. (NYSE:ELV) took a couple of blows this quarter. First, it warned that its Medicaid earnings would come in below expectations this year. The Medicaid business has been in the spotlight as a result of COVID-19. Medicaid rolls filled up during the pandemic, but then rolls started to come down as enrollees lost eligibility when the economy began normalizing. This has made estimating the severity and health trends of the remaining population difficult. So far this year, cost trends have been much worse than expected and are out of line with Elevance’s approved rate structure. Margins in the Medicaid business, therefore, will be down this year, and overall profits are likely to be flat. We believe this is a temporary situation. State Medicaid programs are legally required to pay actuarially sound rates to the providers of Medicaid services, such as Elevance. Rates are expected, therefore, to move upward over the next 12 to 18 months, restoring Elevance’s margins to a more normal level.
The second issue for Elevance is investor sentiment. A mentally deranged young man murdered top executive of United Healthcare, the largest health insurer in the country. This led to an Internet frenzy of vicious, inaccurate and, frankly, deplorable criticisms of health insurance companies and their executives. Negative and controversial headlines tend to hurt share prices. This was true of Elevance’s stock in the aftermath of this heinous crime. The share price has fallen to extremely attractive levels, trading currently at about 11X earnings. We added to our position during this weakness.”
2. CVS Health Corporation (NYSE:CVS)
Number of Hedge Fund Holders: 74
CVS Health Corporation (NYSE:CVS) is a health solutions company that operates in four segments: healthcare benefits, health services, pharmacy & consumer wellness, and corporate/other. The company provides affordable, high-quality, and connected care solutions to its customers whenever and wherever they require it, including at-home health services and virtual services through their tablets, computers, or phones. Apart from being a prominent pharmacy chain, the company is one of the largest health insurers in the United States through its Aetna subsidiary’s operations, ranking it second on our list of the best telehealth stocks to invest in.
CVS Health Corporation (NYSE:CVS) has a diversified business, and its solid market presence across various segments gives it a competitive edge. In recent years, it has focused on primary care, expanding its portfolio through its Cordavis subsidiary, which markets and develops biosimilar drugs.
While the company’s future performance under a new CEO is uncertain, its total revenue for fiscal Q4 2024 increased to $97.7 billion, reflecting a 4.2% growth compared to the prior year and bringing optimism to its operations. Although the company has delivered underwhelming results in the past, it is undergoing several recent management changes and initiatives that are expected to bring it back on track.
On April 15, Morgan Stanley raised the firm’s price target on CVS Health Corporation (NYSE:CVS) to $80 from $68, keeping an Overweight rating on the shares. Patient Capital Management stated the following regarding CVS Health Corporation (NYSE:CVS) in its Q4 2024 investor letter:
“CVS Health Corporation (NYSE:CVS) struggled throughout the year following a number of disappointments related to their Medicare Advantage business. While this had a negative impact on the near-term financials, the issues are well understood, and changes are already being made for the 2025 program. We see a clear pathway to improving margins throughout 2025 in all areas of the business. Furthermore, the company has upgraded their management team promoting David Joyner to CEO and hiring former UnitedHealth Group executive Steven Nelson to run the managed care business. On a longer-term basis, we continue to think CVS has an attractive combination of assets owning a healthcare benefits business (Aetna), a pharmacy-benefits manager (Caremark), an in-home evaluation business (Signify Health) and in-home primary care business (Oak Street Health) supporting the industry transition to a value-based care model. As the company works to implement the turnaround, the company has an attractive dividend yield of 5.8%.”
1. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 150
UnitedHealth Group Incorporated (NYSE:UNH) provides healthcare coverage, data consultancy, and software services. It operates through the OptumRx, OptumInsight, OptumHealth, and UnitedHealthCare segments, which have solid operations. UnitedHealthCare, its insurance division, added millions of customers during fiscal 2024 and is continuing to expand its operations. It offers members options for telehealth visits, with either local providers or through its preferred national providers.
In a report released on April 17, Andrew Mok, CFA, from Barclays, maintained a Buy rating on UnitedHealth Group Incorporated (NYSE:UNH) and set a $560.00 price target.
The company reported strong fiscal Q1 2025 results, with revenue reaching $109.6 billion and undergoing a $9.8 billion year-over-year increase. Earnings from operations touched $9.1 billion, and net margin improved to 5.7%. Its UnitedHealthcare segment reported $84.6 billion in revenue, attributed to an increase in consumers served. Optum’s revenue also increased to $63.9 billion, supported by growth in Optum Rx. UnitedHealth Group Incorporated (NYSE:UNH) returned nearly $5 billion to shareholders through dividends and share repurchases.
Vulcan Value Partners stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its Q4 2024 investor letter:
“UnitedHealth Group Incorporated (NYSE:UNH), a company that we have owned several times in the past, is the largest health insurer in the United States. UnitedHealth Group also owns Optum, which is a rapidly growing healthcare services company. The environment for the health insurance business remains positive as growth in healthcare spending, driven by chronic diseases and an aging population, will continue to outpace overall economic growth. The insurance business benefits from powerful network effects as more members attract more providers and vice versa, which reinforces United’s value proposition and bargaining power with each side of the network. We respect UnitedHealth Group’s management team and have been very pleased with their long-term vision and execution.”
Overall, UNH ranks first among the 10 best telehealth stocks to buy now. While we acknowledge the potential of telehealth stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than UNH but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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