We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why Investors Should Hold Teladoc (TDOC) Stock Now
Read MoreHide Full Article
Teladoc Health, Inc. (TDOC - Free Report) is well-poised to grow on the back of rising access fees and the continuous adoption of telehealth services. Its expanding product offerings are likely to bring in more members in the coming days.
Teladoc, with a market cap of $2.6 billion, is a provider of virtual access to high-quality healthcare and expertise. Courtesy of solid prospects, this Zacks Rank #3 (Hold) company is worth retaining in your portfolio at the moment.
Let us delve deeper.
The Zacks Consensus Estimate for TDOC’s current-year earnings indicates a 20.2% year-over-year improvement. Teladoc beat on earnings in each of the last four quarters, the average surprise being 16.2%. This is depicted in the graph below.
Until last year, steep operational costs plagued TDOC’s bottom line, which is now recovering. We expect total expenses to decline 0.3% year over year in 2024. The company expects to save more than $85 million of expenses through restructuring and efficiency. It expects adjusted EBITDA to be in the range of $350-$390 million for 2024, the mid-point of which suggests 12.8% growth from the 2023 level.
The Zacks Consensus Estimate for current-year revenues is pegged at $2.7 billion, suggesting a 2.3% rise from the prior year’s reported number. The company expects total revenues to be between $2.635 billion and $2.735 million in 2024. We expect 2024 access fees to jump 1.9% year over year, which will support the top-line growth.
One of the major challenges TDOC faced in the last few years was overpaying for the Livongo acquisition, which forced the company to take billions in impairment charges. As several projects wrap up, TDOC expects costs to moderate in 2024. The company is focused on margin expansion via its cost-efficiency programs.
Teladoc Health’s business has been improving from growing operating strength as demonstrated by its improving cash flow situation. In the trailing twelve-month period, net operating cash flow jumped 84.9% year over year to $350 million. The free cash flow of $194 million was higher than $17 million in the year-ago period. TDOC expects free cash flow to be in the range of $210-
$240 million in 2024, higher than the prior year's figure of $194 million.
Teladoc Health’s Integrated Care segment is contributing immensely to the overall top-line performance. Chronic Care’s program enrollment is expected to grow, driven by TDOC’s successful bundled chronic care management solutions. Integrated Care’s margin improved 330 basis points in 2023, driven by lower expenses and improving performance-based revenues. TDOC expects U.S. Integrated Care members to be in the range of 90-92 in 2024. It expects this segment to contribute majorly to overall margin expansion in the next three years. Revenues in the Integrated Care segment are forecasted to witness low to mid-single-digit growth on a year-over-year basis.
The company’s BetterHelp business is expected to gain from new member growth and stable customer acquisition costs. It is one of the most successful acquisitions by the company. TDOC expects revenues in the BetterHelp unit to record flat to low-single-digit growth in 2024. We expect the business to witness 0.1% year-over-year growth this year. With the growing telehealth industry, Teladoc is well-positioned for long-term growth with its digital health interaction platforms.
Key Risks
However, there are a few factors that investors should keep an eye on. The competition in the virtual care space to capture a bigger market share is becoming fierce, which can put pressure on the company's pricing.
Also, Teladoc relies heavily on debt for growth. As such, the high-interest rate environment can lead to increased borrowing costs for the company. Nevertheless, we believe that a systematic and strategic plan of action will drive its growth in the long term.
LeMaitre Vascular’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average beat being 8.9%. The consensus estimate for LMAT’s 2024 earnings suggests an improvement of 21.5% while the consensus mark for revenues indicates growth of 9.4% from the respective year-ago figures.
The Zacks Consensus Estimate for LMAT’s 2024 earnings has moved 8.6% north in the past 30 days.
Edwards Lifesciences’ earnings surpassed estimates in two of the last four quarters and matched the mark twice, the average surprise being 0.80%. The Zacks Consensus Estimate for EW’s 2024 earnings indicates a 10% rise, while the same for revenues suggests an improvement of 8.6% from the respective prior-year figures.
The consensus mark for EW’s 2024 earnings has moved 0.7% north in the past 60 days.
The Zacks Consensus Estimate for Cencora’s fiscal 2024 bottom line is pegged at $13.43 per share, which rose 4.3% in the past 60 days. During this time, COR has witnessed seven upward estimate revisions against none in the opposite direction. It beat earnings estimates in each of the last four quarters, with the average surprise being 6.7%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Here's Why Investors Should Hold Teladoc (TDOC) Stock Now
Teladoc Health, Inc. (TDOC - Free Report) is well-poised to grow on the back of rising access fees and the continuous adoption of telehealth services. Its expanding product offerings are likely to bring in more members in the coming days.
Teladoc, with a market cap of $2.6 billion, is a provider of virtual access to high-quality healthcare and expertise. Courtesy of solid prospects, this Zacks Rank #3 (Hold) company is worth retaining in your portfolio at the moment.
Let us delve deeper.
The Zacks Consensus Estimate for TDOC’s current-year earnings indicates a 20.2% year-over-year improvement. Teladoc beat on earnings in each of the last four quarters, the average surprise being 16.2%. This is depicted in the graph below.
Teladoc Health, Inc. Price and EPS Surprise
Teladoc Health, Inc. price-eps-surprise | Teladoc Health, Inc. Quote
Until last year, steep operational costs plagued TDOC’s bottom line, which is now recovering. We expect total expenses to decline 0.3% year over year in 2024. The company expects to save more than $85 million of expenses through restructuring and efficiency. It expects adjusted EBITDA to be in the range of $350-$390 million for 2024, the mid-point of which suggests 12.8% growth from the 2023 level.
The Zacks Consensus Estimate for current-year revenues is pegged at $2.7 billion, suggesting a 2.3% rise from the prior year’s reported number. The company expects total revenues to be between $2.635 billion and $2.735 million in 2024. We expect 2024 access fees to jump 1.9% year over year, which will support the top-line growth.
One of the major challenges TDOC faced in the last few years was overpaying for the Livongo acquisition, which forced the company to take billions in impairment charges. As several projects wrap up, TDOC expects costs to moderate in 2024. The company is focused on margin expansion via its cost-efficiency programs.
Teladoc Health’s business has been improving from growing operating strength as demonstrated by its improving cash flow situation. In the trailing twelve-month period, net operating cash flow jumped 84.9% year over year to $350 million. The free cash flow of $194 million was higher than $17 million in the year-ago period. TDOC expects free cash flow to be in the range of $210-
$240 million in 2024, higher than the prior year's figure of $194 million.
Teladoc Health’s Integrated Care segment is contributing immensely to the overall top-line performance. Chronic Care’s program enrollment is expected to grow, driven by TDOC’s successful bundled chronic care management solutions. Integrated Care’s margin improved 330 basis points in 2023, driven by lower expenses and improving performance-based revenues. TDOC expects U.S. Integrated Care members to be in the range of 90-92 in 2024. It expects this segment to contribute majorly to overall margin expansion in the next three years. Revenues in the Integrated Care segment are forecasted to witness low to mid-single-digit growth on a year-over-year basis.
The company’s BetterHelp business is expected to gain from new member growth and stable customer acquisition costs. It is one of the most successful acquisitions by the company. TDOC expects revenues in the BetterHelp unit to record flat to low-single-digit growth in 2024. We expect the business to witness 0.1% year-over-year growth this year. With the growing telehealth industry, Teladoc is well-positioned for long-term growth with its digital health interaction platforms.
Key Risks
However, there are a few factors that investors should keep an eye on. The competition in the virtual care space to capture a bigger market share is becoming fierce, which can put pressure on the company's pricing.
Also, Teladoc relies heavily on debt for growth. As such, the high-interest rate environment can lead to increased borrowing costs for the company. Nevertheless, we believe that a systematic and strategic plan of action will drive its growth in the long term.
Key Picks
Some better-ranked stocks in the Medical space are LeMaitre Vascular, Inc. (LMAT - Free Report) , Edwards Lifesciences Corporation (EW - Free Report) and Cencora, Inc. (COR - Free Report) . LeMaitre Vascular currently sports a Zacks Rank #1 (Strong Buy), and Edwards Lifesciences and Cencora carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
LeMaitre Vascular’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average beat being 8.9%. The consensus estimate for LMAT’s 2024 earnings suggests an improvement of 21.5% while the consensus mark for revenues indicates growth of 9.4% from the respective year-ago figures.
The Zacks Consensus Estimate for LMAT’s 2024 earnings has moved 8.6% north in the past 30 days.
Edwards Lifesciences’ earnings surpassed estimates in two of the last four quarters and matched the mark twice, the average surprise being 0.80%. The Zacks Consensus Estimate for EW’s 2024 earnings indicates a 10% rise, while the same for revenues suggests an improvement of 8.6% from the respective prior-year figures.
The consensus mark for EW’s 2024 earnings has moved 0.7% north in the past 60 days.
The Zacks Consensus Estimate for Cencora’s fiscal 2024 bottom line is pegged at $13.43 per share, which rose 4.3% in the past 60 days. During this time, COR has witnessed seven upward estimate revisions against none in the opposite direction. It beat earnings estimates in each of the last four quarters, with the average surprise being 6.7%.