Telemedicine, which became a household term during the pandemic, is now a go-to option for many patients who prefer to avoid the hassle of doctor visits. Instead of driving to appointments or sitting in crowded waiting rooms, patients can easily get prescriptions and treatment recommendations and even check their vitals using connected devices from the comfort of home.

As the demand for these services keeps growing, investors could take a look at these three telemedicine stocks that are well-positioned to benefit from this trend and help make healthcare more accessible: Doximity, Inc. (DOCS), Hims & Hers Health, Inc. (HIMS), and GoodRx Holdings, Inc. (GDRX).

With the digitization of healthcare, telemedicine offers an efficient, scalable way to bridge care gaps and enhance patient outcomes. Online doctor consultations are projected to increase by 13.7 million between 2024 and 2028, reflecting an increase of 11.7%. Over half of U.S. patients now find virtual visits more convenient than traditional ones.

Given the growing demand for telemedicine, the market is estimated to grow at a CAGR of 19.3% during the forecast period of 2025-2034, reaching a value of $426.90 billion by 2034. This growth presents a promising outlook for telemedicine providers, as it is likely to drive increased consumer demand for convenient healthcare solutions, potentially boosting their revenue.

To that end, let us dig deeper into the fundamentals of the aforementioned stocks in detail:

Doximity, Inc. (DOCS)

DOCS operates a cloud-based digital platform designed specifically for medical professionals in the United States. It serves as a hub where physicians and healthcare practitioners can connect with peers, access the latest medical research and news, conduct virtual patient visits, and streamline career management.

The stock’s trailing-12-month EBIT and levered FCF margins of 39.27% and 35.67% are significantly above their respective industry averages of 2.45% and 2.13%. Likewise, its trailing-12-month gross profit margin of 89.94% is 54% higher than the industry average of 58.39%.

DOCS’ revenue increased 20.4% year-over-year to $136.83 million in the fiscal 2025 second quarter, which ended on September 30, 2024. Its non-GAAP operating income came in at $74.60 million, up 41.3% year-over-year. In addition, the company’s non-GAAP net income amounted to $61.10 million or $0.30 per share, reflecting an increase of 34% and 36.4% year-over-year, respectively.

Analysts expect DOCS’ revenue for the fiscal third quarter (ended December 2024) to increase 13% year-over-year to $152.80 million. Its EPS for the same quarter is expected to grow 15.8% from the prior year to $0.34. In addition, it surpassed the consensus EPS and revenue estimates in each of the trailing four quarters, which is promising.

Shares of DOCS have gained 68.3% over the past year and 80.8% over the past six months to close the last trading session at $49.71.

DOCS’ bright prospects are apparent in its POWR Ratings. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.

It has an A grade for Quality and is ranked #44 out of 62 stocks in the Medical – Services industry. Click here to see DOCS’ ratings for Growth, Value, Momentum, Stability, and Sentiment.

Hims & Hers Health, Inc. (HIMS)

HIMS is a multi-specialty telehealth company connecting consumers to licensed healthcare professionals. Its cloud-based technology enables consumers to access medical care and purchase health and wellness products and services. In addition, the company’s telehealth services allow consumers to talk to medical professionals and industry experts.

On November 21, 2024, HIMS introduced daily meal replacement bars and shakes as part of its comprehensive weight loss offerings. Priced at $110 per month, these nutrient-packed supplements, developed by registered dietitians and nutritionists, are tailored to support individual weight loss goals, particularly for patients using GLP-1 medications. This new offering could drive strong demand and boost HIMS’ revenue by expanding its weight loss product portfolio.

HIMS’ trailing-12-month gross profit margin of 81.13% is 38.9% higher than the industry average of 58.39%. Likewise, its trailing-12-month levered FCF margin of 10.21% is 379% higher than the industry average of 2.13%.

In the fiscal third quarter, which ended on September 30, 2024, HIMS’ total revenue increased by 77.1% year-over-year to $401.56 million. Its income from operations amounted to $22.37 million, compared to a loss of $8.55 million in the prior year quarter. Moreover, its net income stood at $75.59 million or $0.32 per share, compared to a loss of $7.57 million or $0.04 per share in the prior year quarter, respectively.

The consensus revenue estimate of $469.68 million for the fourth quarter (ended December 2024) represents a 90.5% improvement year-over-year. The consensus EPS estimate of $0.11 for the same period indicates a significant increase from the previous year. The company has an impressive earnings surprise history, surpassing the consensus revenue estimates in each of the trailing four quarters.

The stock has surged 202.2% over the past year to close the last trading session at $25.90. However, it has declined 13.7% over the past month.

HIMS’ POWR Ratings reflect strong prospects. It has an A grade for Growth and Quality. Of the 62 stocks in the Medical – Services industry, it is ranked #34. To access HIMS’ Value, Momentum, Stability, and Sentiment ratings, click here.

GoodRx Holdings, Inc. (GDRX)

GDRX provides a consumer-focused digital healthcare platform in the United States. The company offers consumers free access to branded and generic medications, medical provider consultations via telehealth, and comprehensive healthcare research and information.

On January 7, 2025, GDRX introduced “GoodRx for Pets,” offering a convenient and cost-effective solution for pet owners to access medications. This service allows users to save up to 80% on pet prescriptions for conditions like allergies, anxiety, and diabetes, with delivery powered by Allivet and coverage at over 70,000 pharmacies nationwide. The platform’s seamless e-commerce integration enhances accessibility and affordability, positioning the company to capture the growing demand for pet healthcare solutions.

The stock’s trailing-12-month gross profit margin of 94.09% is 61.15% higher than the industry average of 58.39%. Likewise, its trailing-12-month EBITDA and levered FCF margins of 13.89% and 11.45% compare favorably to their respective industry average of 5.81% and 2.13%.

GDRX’s revenue increased 8.5% year-over-year to $195.25 million in the fiscal third quarter that ended on September 30, 2024. Its adjusted operating income grew 17.6% from the year-ago value to $49.39 million. The company’s adjusted net income came in at $31.94 million, up 25% year-over-year, while adjusted EPS rose 33.3% from the prior year’s quarter to $0.08. In addition, its adjusted EBITDA amounted to $64.96 million, indicating an increase of 21.5% year-over-year.

Analysts expect GDRX’s revenue for the fiscal fourth quarter (ended December 31, 2024) to increase 1.6% year-over-year to $199.73 million. Its EPS for the same quarter is expected to be $0.03. In addition, it surpassed the consensus revenue estimates in three of the trailing four quarters.

Over the past month, the stock has declined 10.4%, closing the last trading session at $4.22.

GDRX’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.

It has an A grade for Growth and a B for Value. Within the Medical – Pharmaceuticals industry, it is ranked #29 out of 150 stocks. Click here to see GDRX’s ratings for Momentum, Stability, Sentiment, and Quality.

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DOCS shares were trading at $50.40 per share on Tuesday afternoon, up $0.69 (+1.39%). Year-to-date, DOCS has declined -5.60%, versus a -1.15% rise in the benchmark S&P 500 index during the same period.

About the Author: Shweta Kumari

Shweta's profound interest in financial research and quantitative analysis led her to pursue a career as an investment analyst. She uses her knowledge to help retail investors make educated investment decisions. More...

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