3 Stocks on the Motley Fool Money Radar This Week

Published April 05, 2017
Fool.com

In this segment from Motley Fool Money, Chris Hill asks Motley Fool analystsJason Moser, Simon Erickson, and Jeff Fischer to shed some light on the companies they have their eyes on this week. Find out whyiRobot(NASDAQ: IRBT), Teladoc(NYSE: TDOC), and Momo(NASDAQ: MOMO)made the list.

A full transcript follows the video.

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This video was recorded on March 31, 2017.

Chris Hill: Simon Erickson, you're up first. What are you looking at this week?

Simon Erickson: Chris,I'm looking at iRobot. The ticker is IRBT. This is a company that makes a lot of thehome cleaning products you'vegotten used to. The Roombavacuum cleaner, theBraava mop. These have beendevices that are buzzed around andcleaned the floors and done household chores before, but now they'regetting integrated into the cloud andbecoming smarter. They're now going to be connected throughAmazon Alexa. You have artificial intelligence that's actually making them able to clean, rather than justrun around on the floor. I think that's a lot more valuable in the smart home of the future. I'm keeping my eye on these guys.

Hill: Steve,question about iRobot?

Steve Broido: How much timedoes a company like iRobot have toget this right? It seems like they've been at this for a very long time.

Erickson: I think the internet connectivity and the real push for thesmart home right now, Steve, gives them the window ofopportunity. They have the spatial recognition figured out for years. It'sjust a matter of, how do you actuallyget it to do what you want it to do,which is actually clean your house. I give them a year to really see how this goes in the smart home. I think now is the time to do it.

Hill: JasonMoser, what are you looking at?

Jason Moser: My wife gave me aRoomba for my birthday last year,we have the things sweeping around the hardwoods,it cleans up after the dogs pretty well, actually. I've gotTeladocon my radar, ticker is TDOC. They providetelehealth services viamobile devices, internet, video, phone, basically connecting patients to doctors, andpreventing you from having to actuallygo to that doctor's office, which we know is typically a very inefficient process. I've beenfollowing this company since it went public, a little bit more than a year ago. Stock is having a great year thus far, up better than 50%, andthat's because they continue to grow their top line at 65%-plus rates, they'readding more visits, adding more members. This is aninteresting business that is disrupting the traditional doctor visit model that we've grown up with. I think it's one that has some legs, andI'm going to keep following it.

Hill: Steve?

Broido: Are insurers bullish on this thing?

Moser: Yeah. It'sinteresting, they get morepartnerships with not only companiesbut health plans and whatnot, and I think insurers are finding ways to add this sort of feature as supplemental to plans they're selling out. So, yeah,I do think they find this type ofoffering very attractive.

Hill: Jeff Fischer,what are you looking at?

Jeff Fischer: Momo. The ticker is MOMO. It'sfun to say. The business they offer is also called Momo, it's a social networking platform in China. They have 81 million monthly active users. Earnings per share have been soaring. They're expected to grow about 60% this year. This company's revenue, Steve, has gone from $3 million in 2013 to $550 million in the past few years,it's astronomical. Trades at 25 times forward earnings. Again,it's a Chinese company, soyou need to watch that. But, Momo.

Hill: Steve?

Broido: Doyou trust numbers coming out of China?

Fischer: I do. I'mstarting to more and more. You haveBaidu,transparency is growing.

Chris Hill owns shares of Amazon. Jason Moser has no position in any stocks mentioned. Jeff Fischer owns shares of Amazon and MOMO. Simon Erickson owns shares of Amazon and Baidu. The Motley Fool owns shares of and recommends Amazon, Baidu, and iRobot. The Motley Fool has a disclosure policy.