Shares of Livongo Health (NASDAQ: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.
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.
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.
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.