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Teladoc (TDOC) Stock Soars 166% YTD: More Room for Upside?
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Teladoc Health, Inc. (TDOC - Free Report) benefits from growing revenues, enhanced telehealth services and a solid cash balance.
Shares of the health care provider have surged 166.2% on a year-to-date basis compared with the industry's growth of 28%. The Zacks S&P 500 composite has risen 4.5% in the said time frame. With a market capitalization of $18.6 billion, the average volume of shares traded in the last three months was 3.6 million.
The Zacks Consensus Estimate for 2020 revenues indicates a year-over-year increase of 79.1%. The company has an impressive Growth Score of A. This style score analyzes the growth prospects of a company.
Will the Bull Run Continue?
This Zacks Rank #3 (Hold) company has been a leading provider of comprehensive virtual healthcare services across the United States. Its revenues, which have witnessed a seven-year CAGR of 60.8%, have been constantly benefiting from higher subscription access fees and visit fees. Notably, subscription access fees and visit fees have contributed 84% and 16%, respectively, to Teladoc’s revenues in the first half of 2020. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Further, banking on the solid top-line momentum, the company anticipated revenues between $980 million and $995 million for 2020, the mid-point of which indicates a surge of 78.5% from the figure reported in 2019. Revenues have also been driven by growing membership and patient visits, evident from its forecast of total U.S. paid membership being at least 50 million for this year.
The company’s cost-effective health plans, which seem to be in great demand by employers these days, usually contribute a major portion of the company’s revenues. Backed by strong telehealth services, these health plans enable Teladoc to foray further into government-sponsored programs, including Medicare Advantage and Medicaid. With the help of Teladoc, these programs can be immensely benefited as they mostly remain grappled with cost and access challenges.
Moreover, it is imperative to mention that Teladoc is witnessing an increase in telehealth visits that is outpacing growth in its membership. Stringent social-distancing measures have compelled Americans to stay at home, which has left telehealth visits as the only feasible option to seek medical help. Notably, the health care provider successfully conducted around 4.8 million telehealth visits in the first half of 2020. Also, Teladoc has been focusing on enhancing its existing suite of telehealth services. Other stocks in the same space, namely Humana Inc. (HUM - Free Report) and Magellan Health, Inc. , have also developed telehealth services.
Furthermore, Teladoc has undertaken a number of initiatives, which have broadened its service offerings and enhanced global footprint. In line with this, the health care provider’s merger agreement with Livongo Health, Inc. in August, upon completion, will not only strengthen the global presence of Teladoc but also increase its members in the high-growth Medicare and Medicaid markets. Its completion of the InTouch Health buyout in June have added scale to its virtual care capabilities.
Additionally, the company’s balance sheet continues to impress. As of Jun 30, 2020, Teladoc's cash and cash equivalents came in at $1.3 billion, while debt was $948 million. This highlights that the company has sufficient cash reserves to meet its debt obligations. Further, its long-term debt to capital ratio of 42.3% at second-quarter-end remains lower than the industry’s 64.1%, which seems promising.
Hence, we believe that the company’s strong fundamentals will sustain momentum in the long run.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Image: Shutterstock
Teladoc (TDOC) Stock Soars 166% YTD: More Room for Upside?
Teladoc Health, Inc. (TDOC - Free Report) benefits from growing revenues, enhanced telehealth services and a solid cash balance.
Shares of the health care provider have surged 166.2% on a year-to-date basis compared with the industry's growth of 28%. The Zacks S&P 500 composite has risen 4.5% in the said time frame. With a market capitalization of $18.6 billion, the average volume of shares traded in the last three months was 3.6 million.
The Zacks Consensus Estimate for 2020 revenues indicates a year-over-year increase of 79.1%. The company has an impressive Growth Score of A. This style score analyzes the growth prospects of a company.
Will the Bull Run Continue?
This Zacks Rank #3 (Hold) company has been a leading provider of comprehensive virtual healthcare services across the United States. Its revenues, which have witnessed a seven-year CAGR of 60.8%, have been constantly benefiting from higher subscription access fees and visit fees. Notably, subscription access fees and visit fees have contributed 84% and 16%, respectively, to Teladoc’s revenues in the first half of 2020. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Further, banking on the solid top-line momentum, the company anticipated revenues between $980 million and $995 million for 2020, the mid-point of which indicates a surge of 78.5% from the figure reported in 2019. Revenues have also been driven by growing membership and patient visits, evident from its forecast of total U.S. paid membership being at least 50 million for this year.
The company’s cost-effective health plans, which seem to be in great demand by employers these days, usually contribute a major portion of the company’s revenues. Backed by strong telehealth services, these health plans enable Teladoc to foray further into government-sponsored programs, including Medicare Advantage and Medicaid. With the help of Teladoc, these programs can be immensely benefited as they mostly remain grappled with cost and access challenges.
Moreover, it is imperative to mention that Teladoc is witnessing an increase in telehealth visits that is outpacing growth in its membership. Stringent social-distancing measures have compelled Americans to stay at home, which has left telehealth visits as the only feasible option to seek medical help. Notably, the health care provider successfully conducted around 4.8 million telehealth visits in the first half of 2020. Also, Teladoc has been focusing on enhancing its existing suite of telehealth services. Other stocks in the same space, namely Humana Inc. (HUM - Free Report) and Magellan Health, Inc. , have also developed telehealth services.
Furthermore, Teladoc has undertaken a number of initiatives, which have broadened its service offerings and enhanced global footprint. In line with this, the health care provider’s merger agreement with Livongo Health, Inc. in August, upon completion, will not only strengthen the global presence of Teladoc but also increase its members in the high-growth Medicare and Medicaid markets. Its completion of the InTouch Health buyout in June have added scale to its virtual care capabilities.
Additionally, the company’s balance sheet continues to impress. As of Jun 30, 2020, Teladoc's cash and cash equivalents came in at $1.3 billion, while debt was $948 million. This highlights that the company has sufficient cash reserves to meet its debt obligations. Further, its long-term debt to capital ratio of 42.3% at second-quarter-end remains lower than the industry’s 64.1%, which seems promising.
Hence, we believe that the company’s strong fundamentals will sustain momentum in the long run.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>