Moderna vs Teladoc Stock: The booming pre-COVID economy is gone, and a growing number of experts suggest that a recession is inevitable. However, despite this gloomy state of affairs, investors still have opportunities to turn a profit.
The key is choosing companies that can withstand the pressure of an economic downturn – or, better still, companies that are uniquely positioned to thrive in the current environment.
Most financial analysts are pointing their clients to the energy sector. Energy was the S&P 500’s best-performing index in 2021, and it has returned nearly 60 percent year-to-date in 2022. However, as any experienced investor knows, a diversified portfolio is the best strategy for mitigating risk.
In addition to energy, consumer staples stocks are a smart choice when building a recession-proof portfolio. But the real growth is in healthcare. Though it’s true that the healthcare sector as a whole isn’t returning profits this year, a handful of healthcare companies have demonstrated their ability to navigate complex market conditions, and they have excellent prospects for continued growth into 2023 and beyond.
Two of the most promising healthcare stocks are Moderna, the maker of a leading COVID vaccine, and Teladoc, a pioneer in the virtual healthcare space. Of course, buying both isn’t always practical, so the question comes down to this – Moderna vs Teladoc stock: which is best?
Will Moderna Stock Go Up?
Moderna was virtually unknown at the start of 2020, and now it is a household name. The first product it brought to market was a COVID-19 vaccine that leveraged new mRNA technology to fight the virus in a different way.
As of late October 2022, nearly a quarter billion Moderna shots have been administered in the United States. More than 12 billion vaccinations have been delivered globally, and a large percentage of those were manufactured by Moderna.
Thanks to its COVID-19 vaccine, Moderna saw product revenue accelerate from zero to many billions in a few short months. Specifically, Moderna reported $18.5 billion in revenue attributable to the coronavirus vaccine in 2021, and it is projecting total COVID vaccine revenue to come in at $21 billion for 2022.
Once COVID is considered an endemic virus rather than a pandemic, Moderna has indicated that it expects the US market to come in around $13 billion – and that doesn’t include global sales potential. The 2021 cash windfall and continuing COVID vaccine revenue put the company in a solid position to hasten the development of other drugs in its pipeline.
The beauty of Moderna’s success with mRNA is that the technology is transferable to other applications. Now that the company has proven the effectiveness of mRNA drugs, it is moving forward with a highly anticipated vaccine for respiratory syncytial virus (RSV), as well as a more sophisticated flu vaccine and a vaccine for cytomegalovirus.
All three of these vaccines are in Phase III trials, and if they prove effective, they could start adding to Moderna’s top-line results within the next three years. Clearly, Moderna’s growth story is still at the very beginning, which makes Moderna stock a buy.
Is Teladoc Stock A Buy?
There are dozens of reasons why people don’t get the healthcare they need. The biggest of these include cost, limited availability of primary care physicians, and the sheer inconvenience of getting to a doctor when an accident or illness strikes.
In many cases, passing on preventative care or failing to obtain treatment for acute conditions early contributes to serious health issues that are harder and more expensive to treat.
Teladoc has positioned itself as a solution to the many obstacles that keep patients from seeking medical care early and often. Patients connect with licensed practitioners virtually – it’s fast, convenient, and affordable.
Patients who might have balked at the idea of online care before COVID were far more open to the idea during the height of the pandemic. After all, no one wanted to sit in a waiting room full of sick people. The number of Teladoc visits increased dramatically during this period, and the company’s revenue growth achieved triple digits. For the first time, Teladoc saw its revenues top $1 billion.
That rapid rate of growth was unsustainable, but Teladoc is still growing at a steady pace. In the second quarter of 2022, revenue went up 18 percent, and the number of visits increased by 31 percent. Teladoc leadership predicts total revenue growth of more than 20 percent for the year.
Industry experts predict that telemedicine will play a critical role in the future of healthcare. Fortune Business Insights research projects a compound annual growth rate (CAGR) of 25.5 percent through 2027, which would put the total value of the global telemedicine market at $396 billion.
Teladoc controls a significant portion of that market as the provider for more than 50 percent of Fortune 500 companies – and it has several large contracts in the works for the next benefit year.
Teladoc may have stumbled a bit with the 2020 purchase of Livongo, but it is not yet clear that the hit to the company’s financials is anything more than a temporary obstacle. Livongo was a logical acquisition due to its position in the chronic conditions management market, and it may still prove to be a key driver for Teladoc’s long-term growth.
Overall, Teladoc is in the right place at the right time with the right business model to realize substantial growth over time. That makes Teladoc stock a buy.
Teladoc vs. Moderna Stock: Which Is Best?
Both Teladoc and Moderna stock are smart choices to add healthcare to an otherwise diversified portfolio. However, if it comes down to just one of these growth companies, Moderna is a better bet. Moderna has one crucial advantage over Teladoc: it is already profitable.
Until Teladoc can say the same, Moderna offers investors less risk with tremendous return potential.
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