Accolade (ACCD-Q)

It's in personalized healthcare tech; they help employers save on benefits by offering them a single place to get their health and benefit needs. ACCD has a network of nurses, behavioural specialists, and doctors while their platform uses machine learning to give patients correct recommendations which lowers costs and produces better outcomes. For instance, it steers them away from unnecessary emergency room visits and getting their annual physical. ACCD offers a one-stop shop digital health platform. It's barely reaching its total addressable market, now at 5%. ACCD can grow at 40% annually with rising gross margins. The street loves ACCD, boasting 12 buys, all buys. Cathy Wood likes it too, owning 8% as the top shareholder. However, ACCD has been a dog since peaking at $55 last summer. This does not inspire confidence. ACCD went public in July 2020 when IPOs returned; shares jumped at first. Then, it reported super earnings, but then did a secondary offering that hurt stock momentum, then bounced up in December. Last summer, tt reported a weak quarter and shares tumbled to mid-$30s. It's risen a little with last week's tech rally. ACCD has two problems: healthcare has fallen out of fashion in the market, as are stocks without earnings, even if they promise large future earnings. (Remember Teledoc, Amwell or other telemedicine stocks?) ACCD they've bought two companies this year, in primary care and mental health. In May, around the time of these buys, the company lowered their guidance. It trades at a pricey 11x sales, not earnings. In this space, look at GoodRX instead--fast growth and profitable. Also like Doximity and UnitedHealth which just reported a blowout quarter.