Telehealth has been on the rise in recent years, with the market size in the US valued at $42.54 billion in 2024. The industry is expected to experience significant growth, with a compound annual growth rate of 23.8% between 2025 and 2030. Factors driving this growth include the increasing demand for remote healthcare services, widespread adoption of connected home services, and high internet usage. Additionally, advancements in technology, global smartphone adoption, and government initiatives to promote telehealth programs are contributing to market expansion.
As the cost of in-person healthcare services continues to rise, telehealth presents a compelling opportunity in the healthcare sector. According to McKinsey, approximately $250 billion of current US healthcare spending can be virtualized, encompassing services such as medical professional training, chronic disease management, psychiatric care, and more, all accessible through various devices.
One company that stands out in the telehealth sector is UnitedHealth Group Incorporated (NYSE:UNH). With a strong presence in healthcare coverage, data consultancy, and software services, UNH operates through segments like OptumRx, OptumInsight, OptumHealth, and UnitedHealthCare. The company has been expanding its operations and adding millions of customers, offering telehealth options through local providers or preferred national providers.
Analysts have been optimistic about UNH’s performance, with Barclays maintaining a Buy rating and setting a price target of $560.00. The company reported robust fiscal Q1 2025 results, with revenue reaching $109.6 billion and a significant year-over-year increase. UNH’s UnitedHealthcare segment saw revenue growth, while Optum’s revenue was supported by growth in Optum Rx. The company also returned nearly $5 billion to shareholders through dividends and share repurchases.
Vulcan Value Partners highlighted UNH in its Q4 2024 investor letter, praising the company’s position as the largest health insurer in the US. They noted the positive environment for the health insurance business, driven by healthcare spending growth and an aging population. UNH’s management team and long-term vision were also commended by Vulcan Value Partners.
Overall, UnitedHealth Group Incorporated (NYSE:UNH) ranks at the top of the list of best telehealth stocks to buy. While UNH shows promise as an investment, some AI stocks may offer greater potential for higher returns in a shorter timeframe. For investors seeking undervalued AI stocks, there is an opportunity to explore options beyond UNH.
In conclusion, the telehealth market is poised for continued growth, with companies like UNH leading the way in providing innovative and accessible healthcare solutions. As technology continues to revolutionize the healthcare industry, investors have the opportunity to capitalize on emerging trends and potential investment opportunities in the telehealth sector.
