Please ensure Javascript is enabled for purposes of website accessibility

Why Livongo Health Stock Is Jumping Today

By Keith Speights – May 28, 2020 at 4:05PM

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

Investors appear to be buying the dip.

What happened

Shares of Livongo Health (LVGO) were jumping 11.2% higher as of 3:22 p.m. EDT on Thursday. The company didn't report any news. Investors appear to be buying the healthcare stock on the dip after it declined 8% in the first two trading days of the week. 

So what

There's a good reason to scoop up shares of Livongo at more attractive prices. The company continues to grow like crazy, with sales soaring 115% year over year in the first quarter. Livongo also posted a surprise profit in Q1.

Health information on a smartphone , a glucometer, and health score data on paper documents

Image source: Getty Images.

More importantly, there should be plenty of additional growth ahead. The COVID-19 pandemic has heightened the need for remote healthcare monitoring. Livongo's platform supports monitoring and coaching for individuals with chronic conditions such as diabetes and hypertension. 

Around 31.4 million adults in the U.S. have diabetes, with another 500,000 new diagnoses each year. Another 27.4 million have hypertension. And these numbers include only those covered by employer health plans, Medicare, or Medicaid. Livongo estimates that these two chronic conditions alone represent a total annual market opportunity of nearly $47 billion.

Now what

It will be another couple of months before we learn how Livongo fared in the second quarter. In the meantime, the company's executives could provide some clues about the strength of Livongo's business at major investor conferences. Livongo is scheduled to present at the Jefferies Virtual Healthcare Conference on June 2, at the Stifel Virtual Cross Sector Insight Conference on June 9, and at Goldman Sachs' 41st Annual Global Healthcare Conference on June 10.

Keith Speights owns shares of Livongo Health Inc. The Motley Fool owns shares of and recommends Jefferies Financial Group Inc. and 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.
LVGO

*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
327%
 
S&P 500 Returns
105%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/27/2022.

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.