3 Stocks on the Motley Fool Money Radar This Week
In this segment from Motley Fool Money, the analyst team shares their quick takes for stocks to watch, including Teladoc (NYSE: TDOC), New Relic (NYSE: NEWR), and Mazor Robotics (NASDAQ: MZOR). Tune in to learn more.
A full transcript follows the video.
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This video was recorded on June 23, 2017.
Ron Gross: All right, guys, time for stocks on our radar. I'll bring in our man behind the glass again to ask each of you a question. Jason, you're up first. What do you have?
Jason Moser: I've talked about this one before, Teladoc, ticker is TDOC. This is basically internet medicine, in the simplest description. But man, the stock has more than doubled this year. I've been following this thing since it went public over a year-and-a-half ago. I have a positive rating for it in Fool IQ. There's a lot of value. The value in a platform like this is really seen in the network, and they continue to grow their network as more and more doctors are offering services. Their recent acquisition of Best Doctors is growing that network as well. So given the market opportunity in healthcare, I think the market is going to continue to give these guys a bit of a pass as they continue to grow the business. I just don't know why Simon hasn't gotten it in Rule Breakers yet, I'm kind of holding a grudge.
Gross: Steve, do you have a question about Teladoc?
Steve Broido: Liability-wise, is that the biggest risk to them? That you meet with a doctor online and they get it wrong, and they're liable for something?
Moser: That's true, and I think any physician is going to have malpractice insurance. So that's something that won't go away, unfortunately, for doctors. I imagine that's a bill that will keep on going up.
Gross: Simon, what are you looking at?
Simon Erickson: Ron, I'm going to continue the cloud computing analogy, so if you'll allow me to accumulate my thoughts and you won't rain on my parade, I'm going to go with New Relic. The ticker is NEWR. New company on my list. They are a partner of Amazon Web Services. Amazon does a lot of the hosting and the infrastructure stuff, but it's still customers that are handling their own applications that are based in the cloud. And New Relic is actually helping them with a platform to manage those applications. So if you're buying a drink from Starbucks on your cellphone and the payment button doesn't work, or if you're watching the baseball game and all of the sudden the streaming goes down, you want to prevent problems like that in advance of them actually happening. New Relic is managing a lot of stuff going through the cloud. I really like them going forward.
Broido: What percentage of the population actually knows what the term "the cloud" means? I'm being totally serious, I hear the cloud, like, "Yeah, it's in the cloud, it's all good, don't worry about it."
Erickson: [laughs] I think we need a study on that one.
Gross: Awesome. David, what do you have?
David Kretzmann: I have Mazor Robotics, ticker MZOR. This is an emerging innovator in robotic surgical systems, kind of similar to Intuitive Surgical, a popular Rule Breaking stock over the past decade or so. But Mazor Robotics focuses on spinal surgeries. These robotics systems reduce complications for the patients, and they improve patient outcomes and recovery times. It's a razor and blade business model. They sell the machines to the hospitals and generate recurring revenue by selling the spinal implants themselves for the procedures and servicing the machines each year. These machines are installed in about 150 hospitals worldwide today, up from just over 60 in 2013, so nice growth. I like them.
Broido: How do the results differ from a human surgeon?
Kretzmann: Pretty much better across the board.
Gross: Steve, what do you like? Mazor Robotics, Teladoc, and New Relic.
Broido: I think David's stock sounds very interesting. Mazor? I'm interested.
David Kretzmann owns shares of Amazon, Mazor Robotics, and Starbucks. Jason Moser owns shares of Starbucks. Ron Gross owns shares of Amazon. Simon Erickson owns shares of Amazon and Starbucks. Steve Broido owns shares of Amazon. The Motley Fool owns shares of and recommends Amazon, Intuitive Surgical, and Starbucks. The Motley Fool has a disclosure policy.