We recently published a list of 10 Best Telehealth Stocks to Buy Now. In this article, we are going to take a look at where Zoom Communications Inc. (NASDAQ:ZM) stands against other best telehealth stocks to buy right now.
Overview of the American Telehealth Industry
According to Grand View Research, the telehealth market size in the US was valued at $42.54 billion in 2024. It is expected to grow at a notable compound annual growth rate of 23.8% between 2025 and 2030. Some of the primary factors supporting this growth include the rising demand for remote healthcare services, large-scale penetration of connected home services, and high internet usage. In addition, the global adoption of smartphones, advancements in technology, and a surge in government initiatives to develop telehealth programs are also supporting market growth.
Since the cost of in-person healthcare provision is increasing in the country, telehealth presents a significant opportunity in the healthcare sector. According to McKinsey, around $250 billion of the present US healthcare spending can be virtualized. This includes training for medical professionals, regular check-in appointments for chronic diseases, psychiatric care, and more, all administered and accessed through each individual’s preferred device.
Are Healthcare Stocks a Safe Haven Amid Tariff Turmoil?
Some experts view medical, healthcare, and big pharma stocks as immune from trade carnage, making them a safe haven amid the uncertainty brought about by Trump’s tariffs. Since Trump’s tariffs and macroeconomic uncertainties are causing significant market volatility, we discussed the potential of healthcare stocks as a safe haven amidst the ongoing turmoil in a recently published article on the 10 Best Medical Stocks to Buy According to Billionaires. Here is an excerpt from the article:
On April 8, Mizuho Securities America healthcare sector strategist Jared Holz opined that managed care, particularly the government-centric names, are somewhat safe as they are insulated from tariffs as US-based companies. In fact, the economic slowdown is actually beneficial for them as they want less utilization and less patience through the system, which is how they typically beat numbers. He said that managed care is having a good day, and investors might think about owning some companies in the sector.
Our Methodology
We sifted through stock screeners, financial media reports, and ETFs to compile a list of 25 telehealth stocks and chose the top 10 most popular among hedge funds as of Q4 2024. The list is ordered in ascending order of hedge fund sentiment. We sourced the hedge fund sentiment data from Insider Monkey’s database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Zoom Communications (ZM) Enhances AI Companion with Smart Automation and Customization
A close-up of a hand using a laptop to control an immersive video meeting.MM
Zoom Communications Inc. (NASDAQ:ZM) provides a communications and collaboration platform. Its Zoom for Healthcare offering provides pharma-biotech, physicians, and healthcare providers a secure telehealth platform for collaboration, innovation, and virtual care. The Zoom Workplace for Healthcare add-on provides healthcare-specific AI capabilities that improve the platform’s experience, such as specialized lexicon through healthcare dictionaries, improved effectiveness with personal coaching, and extended knowledge through access to data sources.
In a report released on March 20, Catharine Trebnick from Rosenblatt Securities maintained a Buy rating on Zoom Communications Inc. (NASDAQ:ZM) and set a price target of $95.00. The company ranks fifth on our list of the best telehealth stocks to buy now.
It also reported steady fiscal Q4 2024 results, with revenue growing 3.3% year-over-year and reaching $1.18 billion. Zoom Communications Inc.’s (NASDAQ:ZM) AI-powered solutions resulted in a 7.3% increase in the number of customers, generating over $100,000 in trailing 12-month revenue. The company’s EPS surpassed expectations of $1.35, reaching $1.41. For fiscal year 2026, the company estimates total revenue in constant currency between $4.8 billion and $4.81 billion.
Overall, ZM ranks 5th on our list of the best telehealth stocks to buy right now. While we acknowledge the potential for ZM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ZM but trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
