Telehealth is one sector that investors have been particularly bearish on this year. The Global X Telemedicine & Digital Health ETF has fallen 33% since the start of 2022, which is notably worse than the S&P 500's 24% decline over the same period. Despite promising growth opportunities in telehealth and the digitalization of healthcare, investors have been shunning these stocks.

Shares of top telehealth company Doximity (DOCS -2.73%) are down 42%, and other stocks are down even more. But buying shares of these companies right now could be a profitable, contrarian move to make. Let's take a closer look.

A recent study shows telehealth is here to stay

Last month, research and analytics company J.D. Power released the results of its 2022 U.S. Telehealth Satisfaction Study. There were many encouraging numbers from the study, suggesting that despite a return to normal in healthcare, telehealth adoption isn't likely going back to pre-pandemic levels.

In 2019 -- prior to the pandemic -- just 37% of people surveyed said they had used telehealth video services within the past year. Today, that percentage is up to 67%. And of those who have used it recently, an incredible 94% indicated that they probably or definitely will use it again.

One of the benefits of using telehealth is that it can eliminate the need for an in-person visit, especially for things that may not necessarily justify a trip to the doctor's office. Among the things that survey respondents said they would prefer to do via telehealth instead of an in-person visit include:

  • Refilling prescriptions (80%)
  • Reviewing different medication options (72%)
  • Going over test results (71%)
  • Mental health visits (57%)

At a time when the number of seniors is rising and accounting for more of the demographic, there is a need for more flexible healthcare options. Telehealth can serve an important purpose in being able to eliminate the need for some in-person visits and providing relief for the healthcare industry.

Analysts from Grand View Research agree with the potential that the industry has, projecting that the global telehealth market could be worth close to $790 billion by 2028 -- nearly nine times the $89.3 billion they forecast it will be worth this year.

Given how cheap many telehealth stocks are right now, that only makes these growth stocks even more attractive buys.

Doximity: a high-growth stock for the long haul

For investors who are looking to gain exposure to the telehealth industry, there is no shortage of options to choose from today. Doximity, for example, is a promising stock with tremendous potential. It is often compared to Microsoft's LinkedIn but focuses on doctors rather than all professionals, and it is trading at around its 52-week low -- down 64% from its high of nearly $81.

While the stock isn't cheap, trading at 42 times its earnings, Doximity's potential in the industry is what could still make it look like a decent value buy in the long haul.

More than 80% of U.S. doctors are on Doximity's platform. It allows physicians to collaborate and connect more easily; plus, it provides them with a dialer app that helps protect their privacy when contacting patients.

The company has been a growth machine. For the fiscal year ended March 31, sales totaled $343.5 million, or three times what the company generated just two years earlier. Doximity estimates that its total addressable market could reach $18.5 billion through the opportunities it sees in staffing, marketing, and telehealth software. 

For long-term investors who can afford to buy and hold, a stock like Doximity with significant potential can make a whole lot of sense. And you may not need to hang on all that long to earn a great return because, with a modest valuation of $5.6 billion, Doximity could also make for an attractive acquisition target for a larger healthcare company -- or a tech business looking to expand its reach. 

Doximity is just one example of how you can gain exposure to telehealth, and there are many other ways, including through an exchange-traded fund.

Investors shouldn't shy away from telehealth

Growth stocks have been struggling this year, especially those that did well due to COVID-19. But buying now while valuations are low could set investors up for significant gains later on. Whether it's Doximity, a telehealth-oriented exchange-traded fund, or another type of investment, this is an industry that investors should want to have exposure to, given the potential for long-term gains.