In this segment from Motley Fool Money, Chris Hill asks Motley Fool analysts Jason Moser, Simon Erickson, and Jeff Fischer to shed some light on the companies they have their eyes on this week. Find out why iRobot (NASDAQ:IRBT), Teladoc (NYSE:TDOC), and Momo (NASDAQ:MOMO) made the list.
A full transcript follows the video.
This video was recorded on March 31, 2017.
Chris Hill: Simon Erickson, you're up first. What are you looking at this week?
Simon Erickson: Chris, I'm looking at iRobot. The ticker is IRBT. This is a company that makes a lot of the home cleaning products you've gotten used to. The Roomba vacuum cleaner, the Braava mop. These have been devices that are buzzed around and cleaned the floors and done household chores before, but now they're getting integrated into the cloud and becoming smarter. They're now going to be connected through Amazon Alexa. You have artificial intelligence that's actually making them able to clean, rather than just run around on the floor. I think that's a lot more valuable in the smart home of the future. I'm keeping my eye on these guys.
Hill: Steve, question about iRobot?
Steve Broido: How much time does a company like iRobot have to get this right? It seems like they've been at this for a very long time.
Erickson: I think the internet connectivity and the real push for the smart home right now, Steve, gives them the window of opportunity. They have the spatial recognition figured out for years. It's just a matter of, how do you actually get it to do what you want it to do, which is actually clean your house. I give them a year to really see how this goes in the smart home. I think now is the time to do it.
Hill: Jason Moser, what are you looking at?
Jason Moser: My wife gave me a Roomba for my birthday last year, we have the things sweeping around the hardwoods, it cleans up after the dogs pretty well, actually. I've got Teladoc on my radar, ticker is TDOC. They provide telehealth services via mobile devices, internet, video, phone, basically connecting patients to doctors, and preventing you from having to actually go to that doctor's office, which we know is typically a very inefficient process. I've been following this company since it went public, a little bit more than a year ago. Stock is having a great year thus far, up better than 50%, and that's because they continue to grow their top line at 65%-plus rates, they're adding more visits, adding more members. This is an interesting business that is disrupting the traditional doctor visit model that we've grown up with. I think it's one that has some legs, and I'm going to keep following it.
Broido: Are insurers bullish on this thing?
Moser: Yeah. It's interesting, they get more partnerships with not only companies but health plans and whatnot, and I think insurers are finding ways to add this sort of feature as supplemental to plans they're selling out. So, yeah, I do think they find this type of offering very attractive.
Hill: Jeff Fischer, what are you looking at?
Jeff Fischer: Momo. The ticker is MOMO. It's fun to say. The business they offer is also called Momo, it's a social networking platform in China. They have 81 million monthly active users. Earnings per share have been soaring. They're expected to grow about 60% this year. This company's revenue, Steve, has gone from $3 million in 2013 to $550 million in the past few years, it's astronomical. Trades at 25 times forward earnings. Again, it's a Chinese company, so you need to watch that. But, Momo.
Broido: Do you trust numbers coming out of China?
Fischer: I do. I'm starting to more and more. You have Baidu, transparency is growing.
Chris Hill owns shares of Amazon. Jason Moser has no position in any stocks mentioned. Jeff Fischer owns shares of Amazon and MOMO. Simon Erickson owns shares of Amazon and Baidu. The Motley Fool owns shares of and recommends Amazon, Baidu, and iRobot. The Motley Fool has a disclosure policy.