Please ensure Javascript is enabled for purposes of website accessibility

Why Livongo Health Stock Jumped Today

By Keith Speights – Updated May 12, 2020 at 3:35PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A plug from a well-known TV host appears to have helped boost the healthcare company.

What happened

Shares of Livongo Health (LVGO) were jumping 11.8% higher as of 3:05 p.m. EDT on Tuesday. The surge appeared to be the result of Jim Cramer highlighting the stock on CNBC's Mad Money on Monday.

So what

The boost from Cramer mentioning Livongo on his long-running TV show will likely be only a temporary one. But the underlying reasons he likes the healthcare stock are good ones for long-term investors to consider.

Smartphone displaying health metrics next to a glucomter on top of documents with health information

Image source: Getty Images.

Livongo's personal health platform helps individuals with chronic illnesses such as diabetes, hypertension, and obesity more effectively manage their conditions. Cramer noted that these chronic illnesses are "three of the biggest risk factors that can make COVID-19 fatal."

That observation is correct. Even without the coronavirus pandemic, though, diabetes, hypertension, and obesity are each major health problems that continue to affect more people every year. Livongo Health's long-term prospects look very strong, with or without the impact of the COVID-19 outbreak.

Now what

Free positive publicity is always welcome news for companies. Even better news could be on the way for Livongo.

CEO Zane Burke said in Livongo's Q1 conference call last week that the company expects the U.S. government "will take further actions to expand the use of remote monitoring, managing and testing, to better protect our most vulnerable populations with diabetes, hypertension, keeping them at home, healthy and out of harm's way." Such actions would likely create an even bigger opportunity for Livongo's personal health platform.

Keith Speights owns shares of Livongo Health Inc. The Motley Fool owns shares of and recommends Livongo Health Inc. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Livongo Health Inc Stock Quote
Livongo Health Inc

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/06/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.