2 Stocks That Could Turn Your $600 Stimulus Check Into a Fortune

Stimulus checks are on the way. And with your $600, you could treat yourself to a shiny new piece of tech or stash it in your savings account. Or even better, you could turn that $600 into a whole lot more — by investing it. But don’t forget: You should only invest your stimulus check if your bills are paid and you don’t need the money for essentials.

So let’s talk about investing. You could put your stimulus check to work by buying shares of companies with strong revenue growth or an especially convincing revenue outlook. And since the coronavirus crisis isn’t over, it’s a good idea to buy those players that can perform in such an environment in 2021. With this in mind, here are two stocks to add to your watchlist.

1. Teladoc

Teladoc Health (NYSE:TDOC) is a leader in the telemedicine market. The company provides virtual medical visits to more than 51.5 million members in about 175 countries. The platform offers more than 450 medical subspecialties — and even advice or second opinions from experts.

Teladoc’s revenue soared last year during the coronavirus pandemic, while many doctors’ physical offices were closed or operating at lower capacity. And in many cases, patients just preferred the contactless experience of an online visit. Teladoc’s revenue in the third quarter ended Sept. 30 climbed 109% year over year. Total visits in the period surged more than 200% to 2.8 million.

It’s likely that gains will continue as long as this health crisis continues. But it’s also likely gains will continue once it’s over. As the U.S. opened for business in June and July after the first major surge of the coronavirus, Teladoc said its visit volumes remained high. In fact, in certain geographic areas, they grew twice as quickly as they did prior to the pandemic.

Teladoc revenue had already been climbing pre-pandemic. Annual revenue has been gaining since the company went public in 2015. It grew at a compound annual growth rate (CAGR) of 48% from that time through the full year 2019. This shows that demand for telemedicine is truly on the rise, and isn’t just a trend linked to the pandemic.

Unfortunately, Teladoc hasn’t been able to achieve profitability yet. In the most recent quarter, Teladoc reported a loss per share of 43 cents. But earnings estimates for the next fiscal year indicate that profitability is on the horizon.

TDOC EPS Estimates for Next Fiscal Year Chart

Last year’s merger with Livongo is another element that will quickly boost revenue. Through the deal, Teladoc acquired Livongo’s bread and butter — digital management of chronic diseases. Teladoc predicts the merger will result in $100 million in revenue synergies by 2022.

Read about the next stock on Fool.com

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