3 Undervalued Healthcare Stocks Invstors Can Buy Right Now

Finance / Macro Context (Healthcare Policy + Pricing Pressure)

The U.S. healthcare industry is described as being in “significant upheaval,” driven by the current administration’s policy agenda.

Policy aims

• Push consumers to pay more of their own healthcare costs.
• Reduce public health-care spending as a percentage of total spending.
• Apply pressure on medical and pharmaceutical companies to lower consumer prices.

Resulting dynamic

• “Effective policy changes and agreements” between authorities and healthcare providers to reduce prices in exchange for reduced tariffs and other restrictions.

Investor takeaway

• Creates both opportunities and risks.

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Tickers / Companies Mentioned

• Teladoc Health (no ticker provided)
• Eli Lilly (no ticker provided; commonly LLY, but not stated)
• Oscar Health (no ticker provided)

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Explicit Valuation / Performance Numbers & Implied Recommendations

1) Teladoc Health

Revenue trend

• “Revenue increased more than 5 times” during the pandemic period.
• After reopening, business “stabilized.”
• One segment “leveled off,” while another segment is “falling by almost 20%.”

Cost / operational actions mentioned

• Reducing advertising costs
• Increasing efficiency
• Improving availability of medical professionals on the platform

Expected business tailwind

• Potential for virtual care to replace some in-person visits, but not 100%.

Valuation & upside

• Fair value: $7.86
• Current market price: $6.13
• Implied growth potential: ~30% over 12–18 months

Framing

• Described as “worth investing in” (explicit recommendation).

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2) Eli Lilly

Key driver cited

• Weight-loss drugs driving a sales surge (referenced alongside “AI-company success patterns”).

Cash flow / growth forecast

• Free cash flow forecast: $12B in 2025
• Expected to exceed $77B by 2032

Valuation & upside

• Fair value: $1,494
• Current market price: $1,153
• Implied growth potential: ~30% over 12–18 months

Portfolio action

• Presenter states they own Eli Lilly shares and are interested in purchasing additional shares (explicit buy/accumulation intent).

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3) Oscar Health

Growth & AI-driven efficiency claims

• “One of the best healthcare companies” for implementing AI to increase efficiency/productivity.
• “Fastest growing” since 2024.

Growth rates mentioned

• Delivered >40% compound annual revenue growth rate.
• Management forecast: >20% CAGR through 2030.

Profitability / cost control

• “Controls costs,” with profits growing due to revenue expansion and cost optimization.

Valuation & upside

• Fair value: over $41 per share
• Current market price: “just over $30”
• Implied growth potential: >34% over 12–18 months

Framing

• Positioned as “one of the best” and an undervalued opportunity (implicit recommendation).

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Diversification / Macro-Correlation Argument

• Healthcare spending is described as relatively less tied to macro factors like labor market conditions or income.
• Rationale: people spend on healthcare because they are sick/need treatment, leading to businesses with weaker correlation to macroeconomic indicators.

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Methodology / Framework Mentioned

• A “six-step investment system” for evaluating stocks is referenced, but the steps are not detailed in the subtitles.
• The video mentions using “fair value” calculations for each company, implying a valuation-driven approach, but no specific valuation model (e.g., DCF or multiples) is described.

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Disclosures / Disclaimers

• Sponsorship mention in subtitles: The Motley Fool.
• No explicit “not financial advice” disclaimer appears in the provided subtitles.

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Presenters / Sources

• The Motley Fool (sponsor)
• The presenter is not named in the subtitles.