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Teladoc Announces Stock Sale to Finance Growing Business
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Telehealth provider, Teladoc Inc. (TDOC - Free Report) has announced to sell 5,400,000 shares of its common stock, in an effort to procure funds for expansion.
This financing option has been chosen as the company is rapidly expanding its business. The proceeds from the sale of these shares will be used for general corporate purposes, which include funding for acquisitions and investments in other business, products and technologies.
The latest development signals the company’s intent to rapidly advance growth of its business. The company’s share price performance also bears testimony to its consistent growth and expanding business. In 2016, the company lost 8.13%, but was better off than the Zacks categorized Medical Services industry’s loss of 13.3%. The share price decline was due to investors' weariness over net losses registered by the company over the past many quarters. Yet the stock performed better than the sector, which gives hints of optimism over its ability to turn to profits very soon.
The company’s revenues have grown at a CAGR of 98% from 2013–2015, driven by a CAGR of 40% year over year in membership and 113% increase in visits in for 2013–2015. Teladoc has been witnessing greater growth in telehealth visits which is outpacing growth in its member base. This points to the rapid increase in adoption of its telehealth service. Going forward telehealth is anticipated to gain increased adoption, owing to proliferation of mobile phones. Consequently, the company seeks to grow in the telehealth industry with immense growth opportunities and significant underpenetration (less than 1% penetrated).
Teladoc’s latest guidance for 2017, projects growth in revenue, visits and membership, and a breakeven EBIDTA level reflects that the company will continue to invest in its business to seek growth.
Teladoc currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the space are Cancer Genetics, Inc. , INC Research Holdings, Inc.(INCR - Free Report) and PRA Health Sciences, Inc. . While Cancer Genetics sports a Zacks Rank #1 (Strong Buy), the other two stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cancer Genetics beat expectations in three out of the last four quarters, with an average positive surprise of 9.5%.
INC Research Holdings beat expectations in three out of the last four quarters, with an average positive surprise of 8.21%.
PRA Health beat expectations in three out of the last four quarters, with an average positive surprise of 7.48%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>
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Teladoc Announces Stock Sale to Finance Growing Business
Telehealth provider, Teladoc Inc. (TDOC - Free Report) has announced to sell 5,400,000 shares of its common stock, in an effort to procure funds for expansion.
This financing option has been chosen as the company is rapidly expanding its business. The proceeds from the sale of these shares will be used for general corporate purposes, which include funding for acquisitions and investments in other business, products and technologies.
The latest development signals the company’s intent to rapidly advance growth of its business. The company’s share price performance also bears testimony to its consistent growth and expanding business. In 2016, the company lost 8.13%, but was better off than the Zacks categorized Medical Services industry’s loss of 13.3%. The share price decline was due to investors' weariness over net losses registered by the company over the past many quarters. Yet the stock performed better than the sector, which gives hints of optimism over its ability to turn to profits very soon.
The company’s revenues have grown at a CAGR of 98% from 2013–2015, driven by a CAGR of 40% year over year in membership and 113% increase in visits in for 2013–2015. Teladoc has been witnessing greater growth in telehealth visits which is outpacing growth in its member base. This points to the rapid increase in adoption of its telehealth service. Going forward telehealth is anticipated to gain increased adoption, owing to proliferation of mobile phones. Consequently, the company seeks to grow in the telehealth industry with immense growth opportunities and significant underpenetration (less than 1% penetrated).
Teladoc’s latest guidance for 2017, projects growth in revenue, visits and membership, and a breakeven EBIDTA level reflects that the company will continue to invest in its business to seek growth.
Teladoc currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the space are Cancer Genetics, Inc. , INC Research Holdings, Inc.(INCR - Free Report) and PRA Health Sciences, Inc. . While Cancer Genetics sports a Zacks Rank #1 (Strong Buy), the other two stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cancer Genetics beat expectations in three out of the last four quarters, with an average positive surprise of 9.5%.
INC Research Holdings beat expectations in three out of the last four quarters, with an average positive surprise of 8.21%.
PRA Health beat expectations in three out of the last four quarters, with an average positive surprise of 7.48%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>