GoodRX Holding - GOODRX

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Munnybunny
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GoodRX Holding - GOODRX

Bericht door Munnybunny »

GoodRx represents a solution to seemingly everything that is wrong with the pharmaceutical space. At the heart of the startup is a goal of making prescription drugs more affordable. To do so, it provides consumers coupons and helps match them with the best and most accessible pharmacies. More recently, the company has also expanded its offerings, providing information about prescription drug pricing.

GoodRx checks more than 75,000 pharmacies in the United States.

As millions of Americans continue to deal with unemployment, there has been a concern over how many individuals have recently lost their health insurance.

It appears that GoodRx combines the best of both worlds. It caters to bullish investors ready to dive into red-hot offerings and an often speculative sector. But GoodRx also caters to those who want to see real reform in healthcare. For instance, both President Donald Trump and former Vice President Joe Biden have identified lowering the cost of prescription drugs as key healthcare initiatives. Bipartisan support that aligns with the company mission is a great thing.

Additionally, GoodRx has also expanded into telemedicine (HeyDoctor), providing virtual consultations with doctors. The coronavirus has broadly boosted adoption of such services, and investors should like that GoodRx is a one-stop shop. Promoting accessibility, transparency and all of the innovation that investors so love.







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letta75
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Re: GoodRX Holding - GOODRX

Bericht door letta75 »

Na even afwachten, vorige week op het bootje van Doug Hirsch en Trevor Bezdek gesprongen aan 50,02.

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Re: GoodRX Holding - GOODRX

Bericht door Munnybunny »

GoodRx Hasn't Been Public Long But Here's What We Know
GDRX will not stay in a tight range for long.
By BRUCE KAMICH Oct 07, 2020 | 02:30 PM EDT
Stocks quotes in this article: GDRX

During the lively "Lightning Round" segment of Mad Money Tuesday night, one caller asked Jim Cramer about GoodRx (GDRX) : "I'm a huge fan of GoodRx. You need to wait though, it's way too hot," he said about the recent IPO of the company that helps people find discounts/coupons on drugs.


Let's check out two charts.

In this daily Japanese candlestick chart of GDRX, below, we can see that prices have found a little buying interest (a.k.a. support) in the $48-$46 area and a little resistance above $60.

The On-Balance-Volume (OBV) line may have made a low in early October and if it continues to rise it will be a good sign telling us that buyers of GDRX are more aggressive.



In this daily Point and Figure chart of GDRX, below, we can see some volume activity around $50 and some around $46. There is also some volume activity around $56. Strength above $56 should be viewed as a positive development while weakness below $46 could be a problem for the underwriters.


https://realmoney.thestreet.com/investi ... w-15452878

Bottom line strategy: I have often said that IPOs create problems for chart readers in that there is little information to evaluate. GDRX will not stay in a tight range for long. Traders who are comfortable dealing with IPOs could look to the long side risking a close below $46.

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Re: GoodRX Holding - GOODRX

Bericht door Munnybunny »

Is GoodRx Stock a Buy?


OCT 8, 2020 7:03AM EDT

Telemedicine is rising in popularity during the coronavirus pandemic, and it's been a hot place to invest in this year. Look no further than Teladoc, which has soared 169% so far in 2020. As patients and doctors adapt to a new normal and less face-to-face interaction, there's a growing need for more technology in the healthcare industry. That makes new issues in this part of the segment particularly attractive buys.

GoodRx (NASDAQ: GDRX) went public in September, and its shares soared 53% on their first day of trading. However, now that the dust has settled and the hype's died down, let's take a closer look at the stock and assess whether it's a good long-term investment worth adding to your portfolio today.

Does the business have a sustainable competitive advantage?

This is a question investors should always ask when evaluating a business for the first time. It's what billionaire investor Warren Buffett refers to as a "moat" -- a key benchmark he considers when deciding whether to invest in a business or not. The wider a company's moat, the safer it is from competition. The bulk of GoodRx's business centers around prescriptions. When someone uses a GoodRx code to fill a prescription, the company is entitled to earn a fee from the pharmacy benefits managers (PBM) that it has contracts with. In 2019, 94% of the company's sales were due to these prescription transactions.

The key advantage that GoodRx has right now is the agreements it has with PBMs. Plus, its easy-to-use app is very popular with customers. The number of active users is a key metric for GoodRx as it is for many tech companies that rely on apps. GoodRx's monthly active users reached 4.4 million for the period ending June 30 -- 25.7% higher than the 3.5 million users it recorded at the same time last year. Users love the app since it helps them find good deals on prescription drugs and thus save money.


However, that doesn't translate into a wide moat. Tech companies with greater resources could potentially offer more competition for GoodRx in the future. One example is Amazon, which acquired the online pharmacy PillPack in 2018. The Amazon Pharmacy fills prescriptions and delivers them directly to patients.

In September, Walmart announced it would be expanding its health-service offerings to additional locations across the country. The big-box retailer currently offers low-cost healthcare options, including primary care, optometry, and dentistry, in five of its stores in Georgia and one in Arkansas. Walmart said last month it will now be launching the services in Chicago and Jacksonville in addition to more locations in Georgia by the end of next year. It's also eyeing Orlando and Tampa as potential markets.

Both Walmart and Amazon are serious threats that could potentially undercut GoodRx by offering better discounts. The danger to GoodRx is that they could chip away at the company's active user base and steal some market share. If there's one company a business doesn't want to be competing against on price, it's Walmart.

GoodRx acquired telemedicine company HeyDoctor in 2019, but that isn't going to be easy to grow. Teladoc's merger with Livongo Health creates a giant in the industry that will also pose significant competition. GoodRx launched its telehealth marketplace in March. Since then, it's attracted one million visits from customers, resulting in over 200,000 medical visits and tests. By comparison, Teladoc reported 2.8 million virtual visits on its telehealth platform in its most recent quarterly results, for the period ending June 30.


How strong are GoodRx's financials?

Growing competition doesn't necessarily mean GoodRx is in trouble, especially if its business is strong. In 2019, the California-based business recorded a profit of $66 million -- up 50.8% from the previous year. Through the first six months of 2020, GoodRX's bottom line is already at $54.7 million with a profit margin of 21.3%.

It's one thing for a company's sales to be growing, but many new IPOs aren't yet profitable, which isn't the case for GoodRx. With a strong profit margin, the company's in good shape even if a rise in competition leads to tighter margins and a slimmer bottom line.

A look at the valuation

As good as the business may be, it's important to consider its current valuation. Today, GoodRx is at a $20.2 billion valuation. That's a hefty price for a company that's generated profits of just $89.5 million over the past four quarters.

The company's stock has a hefty price-to-earnings (P/E ratio of around 225. That's more than 10 times the 22.9 P/E that the average stock in the Health Care Select Sector SPDR Fund trades at. And if you look at the company's price-to-sales ratio, GoodRx's valuation still looks extreme, trading at more than 40 times revenue. The average healthcare stock trades at just 1.7 times its sales.

GoodRx isn't a buy right now

There's a lot to like about GoodRx, but unfortunately, its high valuation makes the stock too expensive to own today. The markets as a whole are overpriced, and GoodRx isn't an exception. And with a potential market crash just around the corner, it may not be long before GoodRx and other stocks become a lot cheaper. If you're eager to invest in this stock, you may be better off waiting for now.

Over the long term, GoodRx possesses lots of potential. But with some big companies like Amazon and Walmart taking more of an interest in healthcare, this is not a stock you can just buy and forget about.

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letta75
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Re: GoodRX Holding - GOODRX

Bericht door letta75 »

Wall Street expects GoodRx to benefit from strong consumer brand
14:17 (19/10) - Bron: Reuters

Analysts initiate coverage of online prescription drug platform GoodRx Holdings Inc, multiple brokerages rate the stock 'Buy'
Shares up 0.2% at $53.10 in premarket trading, stock up 15.2% after debuting at $46 late-September

BUSINESS MODEL, PRESCRIPTION MARKET GIVE AMPLE GROWTH RUNWAY

- J.P. Morgan ("neutral", PT: $59) says even with COVID-19 headwinds, expect GDRX to grow revenue 38% this year before re-accelerating during 2021 and in 2022. Co has many competitive advantages, J.P. Morgan says, one of them being the strength of its consumer brand .
- Barclays ("equal weight", PT: $53) says long-term outlook for GDRX looks bright against a backdrop of higher un-insured post-COVID-19, increasing insurance coverage gaps and escalating healthcare costs.
- GDRX is moving beyond the core market into telehealth, subscription and advertising, Barclays adds
- Evercore ISI ("outperform", PT: $65) says GDRX has continued to expand the number of its relationships with pharmacy benefit managers, making it less and less dependent on any one in particular.
- Cowen and Company ("outperform", PT: $63) says GDRX's core prescription business is well positioned in the expanding cash pay market, given its status as the go-to app for prescriptions and competitive pricing.
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