During the early stages of the COVID-19 pandemic, medical facilities were spread thin in densely populated areas like New York City. Beds where initially in short supply, and in some hospitals, patients were lined up in the hallways as the system was inundated.
But 5G could be a step in the right direction for keeping hospitals from getting overextended like this in the future. And one of the most promising 5G technology stocks has a foothold in that business. Money Morning Executive Editor William Patalon III calls it the "Zoom of Healthcare."
5G is the fifth generation (5G) wireless communications network soon to be rolled out everywhere. It uses a wider frequency spectrum so many more devices can operate in the same geographic area. The capacity could increase by a factor of 250 times over the current 4G. That also means transmissions speeds will soar - Vodaphone says 10 times over 4G. And that will enable faster communication than ever.
Why is that important? Because people can interact with machines or other people in near real time. Think about how that will transform streaming and remote-controlled drones and driverless cars. It will truly revolutionize the Internet of Things (IoT).
But 5G speeds will also transform the healthcare system as we know it. Here's why - and one of the best 5G stocks leading the charge...
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With 5G, doctors and patients can interact via webcam instantly, with zero latency. Surgeons will even be able to guide operations from miles away, with total clarity and no lag.
That means fewer people driving to see medical professionals, and less time in waiting rooms. And greater certainty that the people admitted to the hospital are those truly in need of care.
When 5G is paired with artificial intelligence, it could be a whole new ballgame.
Most everyone has heard of Zoom Video Communications Inc. (NASDAQ: ZM) by now. From visits with Grandma to school-at-home lessons with teachers to business meetings with clients, Zoom has become the go-to connectivity application.
But there is another Zoom out there that can make a huge impact on the $1.7 trillion health care industry, according to Bill Patalon.
Most people have never heard of it. And that is actually a good thing for investors. This tech firm - and the pandemic-supercharged telemedicine wave that it's riding - are part of an enormously profitable trend. And it will only get more necessary in a post-COVID world. Its revenue could get a "telemedicine boost" of 35% to 63% a year, and its stock price could soar...
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Teladoc Health Inc. (NASDAQ: TDOC) has emerged as the leading purveyor of virtual care delivery (VCD) systems, with a platform that makes it possible for:
This does not even consider the future where people can use wearable medical devices, connected via the IoT, so doctors can track specific conditions to get ahead of them before they cause real problems.
The market will be huge. By 2024, we'll be spending $624 billion a year on "connected health," according to Grandview Research.
This is happening at a time when consumers are open to new ideas.
Even with shelter-at-home orders starting to lift, people may still be leery of going to a doctor's office or hospital. The hidden cost of the lockdown was that cancer screenings, childhood immunizations, and many more procedures went undone. Small problems, if never properly diagnosed, could turn into serious problems.
And that is why Teledoc is such an important innovation. It's been growing sales at higher-double-digit rates for the last five years. That is years before the pandemic reached us, so this is not just a fear-driven fad.
In fact, Teledoc is working to disrupt about $57 billion worth of medical subsectors, including the specialist market, ambulatory care, and behavioral health.
In its most recent earnings report, Teladoc said sales jumped 41% to reach $181 million. Telehealth visits skyrocketed 92% to reach 2 million. Visits for all of 2019 totaled 4.1 million. That means Teladoc matched half of last year's total in a single quarter of this year.
As of Thursday's $166.90 close, the stock was up 99.35% for the year. But it was even higher last month, topping $200 per share. It was truly a hot stock. But now that it has pulled back, it is even more attractive.
Action to Take: New healthcare solutions are arising in our post-COVID world. Bill Patalon points investors to the "Zoom of Healthcare." Scoop up shares of Teledoc for $166 today to grab a piece of the $624 billion telehealth industry.
Working from home, telemedicine, and even online grocery shopping are trends that've been here for years without causing any problems... until February.
The 88 most populous cities across the United States are now seeing their Internet speeds tumble by 44% (and this could just be the start).
That's why the FCC had to step in - and its $10 billion initiative could translate to a huge payout because of it.
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