One Medical, IBD Stock Of The Day, Breaks Out On Covid Vaccines, Analyst Pick
Licensing
1Life Healthcare
ONEM
$ 47.71
$5.03
11.79%
139%
IBD Stock Analysis
- Clears 44.59 buy point in heavy volume
- Relative strength line clears short-term high, nears record
- Revenue growth accelerated to 46% in latest quarter
Composite Rating
28/99
Industry Group Ranking
166/197
Emerging Pattern
Cup with Handle--
ALSO CALLED THE ANASTASSIA CURVE!
One Medical brand clinic operator
1Life Healthcare(
ONEM) is the
IBD Stock Of The Dayas ONEM stock broke out past a buy point and to record high Tuesday. The Covid vaccine rollout and a "top idea" call from a Wall Street analyst are both giving the fast-growing 2020 IPO a shot of momentum.
Volume 0%
On Tuesday, JPMorgan Chase health care analyst Lisa Gill called ONEM stock her top idea for 2021 among small and midcap companies. Gill also touted
Teladoc(
TDOC) as her top technology play and
CVS Health(
CVS) as the most compelling value play.
One Medical Investor Presentation
Gill's ONEM stock calls follow last week's JPMorgan Healthcare Conference at which she hosted presentations by One Medical CEO Amir Rubin, among others. Gill noted during the Jan. 12 presentation that a 60 Net Promoter Score, the net share of consumers likely to recommend a service, is good in health care. She called One Medical's 90 rating "off the charts."
Rubin explained that One Medical's popularity comes from seamlessly coordinating care on behalf of members through digital channels. That includes reminders that it's time for a cancer screening, to scheduling appointments and sharing records with specialists at its local health network partners. One Medical's role is " to own that complexity on behalf of consumers," Rubin said.
One Medical's role in Covid vaccinations will have an impact on revenue, but other effects of serving the community are more meaningful. Rubin noted that anyone can seek their vaccination through One Medical, not just members.
"Coming out of that, consumers get exposure to One Medical," as do employers, Rubin said. He added that One Medical has been serving a number of schools and universities.
In a discussion of telehealth, Rubin noted that One Medical has made its digital services available even in markets where it doesn't have clinics. The reason: The company is "now starting to engage with multimarket employers," Rubin said, expanding its market opportunity.
On Jan. 8, Piper Sandler analyst Sean Wieland raised his ONEM stock price target to 51 from 44, citing his firm's proprietary app download analysis. Wieland noted 38,500 One Medical app downloads in Q4. That compares to One Medical's guidance of 19,000 to 29,000 new members in the quarter.
ONEM Stock Analysis
ONEM stock surged 12% to 47.71 in Tuesday's stock market action, breaking out from a 27-week
cup-with-handlebase, according to a
MarketSmith analysis. The
buy pointis 10 cents above the handle high of 44.49 on Jan. 4.
The buy zone runs through 46.82, 5% above the buy point.
Volume was heavy on the ONEM stock breakout.
The One Medical stock base was 43% deep, which is more than investors would typically like to see. But deep bases can work and recent IPOs are often more volatile.
One Medical stock's
relative strength line, the blue line in the charts provided, hasn't quite cleared its July 10 peak. That came amid a failed breakout attempt. ONEM stock may have suffered as the summer Covid wave escalated, since that's a headwind for in-office fee-for-service visits.
One Medical Business
San Francisco-based One Medical had 511,000 members at the end of Q3, up 29% from a year ago. Revenue grew 46% to $101.7 million, the best gain in at least five quarters.
Rubin told the JPMorgan conference that membership revenue accounts for 19% of the total. That reflects employer fees on behalf of workers and $199 annual payments by individuals.
The rest is split between fees for in-office or telehealth visits and payments from health network partners.
One Medical had 103 clinics at the end of Q3, up 20 year-to-date, in 12 cities. It plans to expand to five more markets by the end of 2021.
The company reported an adjusted EBITDA profit of $3.5 million in Q3 but management said that was due to pent-up demand, forecasting a Q4 loss.
Amazon(
AMZN) is seen as a potential competitor long term as it begins to expand clinics beyond its own employees.
