Livongo Health, the excellent health tech play.

Its time to talk about one of my favorite and most profitable names. $LVGO otherwise known as Livongo Health.


Current Price: $70.99

52/Wk High: $71.12

52/Wk Low: $15.12


Read below for the breakdown!


$LVGO is a health care technology company helping people with chronic health issues and given that there are over 145 million people with a chronic health issue, the market is huge.


The company created a system in which collects Applied Health Signals or uses them to collect health data from customers through smart devices like your iPhone.


The data collected is then sent through AI and in return, the customer is provided with feedback, healthcare advice, helpful information: all of which assist the customer with their chronic condition.


$LVGO uses remote monitoring technology that also helps customers with chronic health issues track key health information and stats to keep their health in order.


Due to the tremendous benefits the company is growing at a rapid rate. In just their first quarter the company increased their client basis by 44% YOY bringing their total customers to 1,252.


Although that doesn’t sound like much the companies core sector is in diabetes and their Diabetes member count has grown 100% to 328,000 in the first quarter.


The company also reported amazing financials. In the first quarter, Livongo reported revenue of $68.8 million which makes up about a 115% YOY increase; also bringing their EPS loss from $0.79 to $0.06.


Furthermore, the companies outlook looks bright. Their full-year guidance was raised to $290 up to $303 million in revenue equating to a 74% growth YOY.


This company should continue to grow rapidly given how new it is, the massive size of the customer base, and due to the lacking competition in the space.


Analyst on the other hand have been lagging and only have a mean PT of $57.91/share. On the other hand, I think this is very much off and the price targets are in need of an update given the recent earnings results.


The big money is betting on the name with institutional ownership sitting at roughly 38.72%. Big firms like Blackrock are core holders and have positions of up to $337 million.


Finally, with COVID resurging and the consensus that it will come back in the fall, the company should benefit from that and move even higher.


Overall I love the name and think it can move even higher. With great earnings and growth coming in, health tailwinds pushing it, and a massively untapped customer base it looks very good.


Disclaimer: I hold $LVGO common stock long. This is not direct financial advice, simply my opinion based on independent research.


Sources:


The Motley Fool

Etrade

Nasdaq