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Teladoc Stock Rises 59.4% in Three Months: Is This Your Buy Signal?
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Teladoc Health, Inc. (TDOC - Free Report) shares have returned 59.4% in the past three months, outperforming the industry and the S&P 500 Index. Over this timeframe, the industry and the S&P 500 Index have declined 11.7% and increased 6.3%, respectively. In comparison, other virtual care companies like American Well Corporation (AMWL - Free Report) and Hims & Hers Health, Inc. (HIMS - Free Report) have risen 9.8% and 106%, respectively.
TDOC stock is now trading above its 50-day and 200-day moving averages, signaling strong upward momentum.
TDOC’s Three-Month Price Performance
Image Source: Zacks Investment Research
About Teladoc
Teladoc — with a market cap of $2 billion — is a provider of virtual access to high-quality healthcare and expertise globally. Based in Purchase, NY, the company offers virtual medical services, including general medical, specialty medical, chronic condition management and mental health.
Decoding TDOC’s Bright Prospects
Teladoc is well-positioned for long-term growth, supported by an expanding product portfolio, growing memberships, advanced AI integration, diversified business operations and global expansion efforts.
The company continues to broaden its offerings with significant enhancements to its Primary360 service. It also introduces new services to improve care coordination and provide in-home care options. These initiatives fuel membership growth and strengthen its market presence. The rapid success of Primary360 suggests that Teladoc may roll out additional products and solutions in the coming days.
As of Sept. 30, 2024, U.S. Integrated Care Members reached 93.9 million, marking a 4% year-over-year increase. The company projects membership levels to remain steady in the 93.5-94.5 million range throughout 2024.
Teladoc’s use of machine learning and AI continues to drive healthcare innovation. For example, its diabetes management program leverages predictive modeling to help members with type 2 diabetes manage their blood sugar levels more effectively. These AI-powered solutions not only improve care outcomes but also attract more participants to its programs.
The company has also upgraded its AI-enhanced Virtual Sitter solution, which can address workforce challenges and improve care delivery for hospitals and health systems. AI’s role in streamlining healthcare delivery, enhancing digital interventions and scaling operations ensures long-term efficiency and growth.
Teladoc's international operations in Europe, South America and Asia provide a critical diversification edge as competition in the U.S. market intensifies. Its extensive global platform offers a competitive advantage in capturing international growth opportunities.
TDOC’s Earnings Surprise History
TDOC beat earnings estimates in three of the past four quarters and missed once, with an average surprise of 18.8%. The Zacks Consensus Estimate for 2024 revenues is pegged at $2.56 billion, while loss per share is at $5.81 due to incurring a massive goodwill impairment in the second quarter. The consensus mark for 2025 earnings suggests an 83.1% improvement.
Teladoc is trading at a discount compared to the industry average. It presents a compelling investment opportunity with its attractive forward 12-month price-to-sales ratio of 0.78, lower than the industry average of 0.84. The company has a Value Score of A.
In comparison, American Well Corporation and Hims & Hers Health are trading at 0.46X and 3.31X, respectively.
TDOC’s Risks
While Teladoc shows strong growth potential, investors should be mindful of several factors.
The virtual care market is becoming increasingly competitive, putting pressure on Teladoc’s pricing. The space attracted the retail behemoth Amazon.com, which combined a virtual care clinic with One Medical, its virtual and in-person primary care organization.
The rapid evolution of the telehealth market presents challenges. While demand surged during the pandemic, it has since tapered off as restrictions eased. To stay relevant, telehealth providers may need to adopt hybrid models that integrate virtual services with traditional in-person healthcare, offering a more comprehensive approach to patient care.
Teladoc has consistently reported significant losses over the past years. As of Sept. 30, 2024, the company’s accumulated deficit reached $16.2 billion, up from $15.2 billion at the end of 2023. These losses and deficits primarily reflect substantial investments in acquiring new clients, expanding its network of healthcare providers and enhancing its technology platform.
Teladoc’s ability to navigate these challenges will be crucial in sustaining its market position and achieving profitability in the long run.
Final Verdict: TDOC Stock Holds Promise
TDOC stands out as a leading global virtual healthcare provider with a compelling valuation and solid prospects for sustained membership growth. While current market challenges and company-specific risks warrant attention, Teladoc’s long-term growth potential remains strong. Its expanding product portfolio and AI-driven solutions position it to maintain a competitive advantage in the evolving healthcare landscape.
Image: Shutterstock
Teladoc Stock Rises 59.4% in Three Months: Is This Your Buy Signal?
Teladoc Health, Inc. (TDOC - Free Report) shares have returned 59.4% in the past three months, outperforming the industry and the S&P 500 Index. Over this timeframe, the industry and the S&P 500 Index have declined 11.7% and increased 6.3%, respectively. In comparison, other virtual care companies like American Well Corporation (AMWL - Free Report) and Hims & Hers Health, Inc. (HIMS - Free Report) have risen 9.8% and 106%, respectively.
TDOC stock is now trading above its 50-day and 200-day moving averages, signaling strong upward momentum.
TDOC’s Three-Month Price Performance
About Teladoc
Teladoc — with a market cap of $2 billion — is a provider of virtual access to high-quality healthcare and expertise globally. Based in Purchase, NY, the company offers virtual medical services, including general medical, specialty medical, chronic condition management and mental health.
Decoding TDOC’s Bright Prospects
Teladoc is well-positioned for long-term growth, supported by an expanding product portfolio, growing memberships, advanced AI integration, diversified business operations and global expansion efforts.
The company continues to broaden its offerings with significant enhancements to its Primary360 service. It also introduces new services to improve care coordination and provide in-home care options. These initiatives fuel membership growth and strengthen its market presence. The rapid success of Primary360 suggests that Teladoc may roll out additional products and solutions in the coming days.
As of Sept. 30, 2024, U.S. Integrated Care Members reached 93.9 million, marking a 4% year-over-year increase. The company projects membership levels to remain steady in the 93.5-94.5 million range throughout 2024.
Teladoc’s use of machine learning and AI continues to drive healthcare innovation. For example, its diabetes management program leverages predictive modeling to help members with type 2 diabetes manage their blood sugar levels more effectively. These AI-powered solutions not only improve care outcomes but also attract more participants to its programs.
The company has also upgraded its AI-enhanced Virtual Sitter solution, which can address workforce challenges and improve care delivery for hospitals and health systems. AI’s role in streamlining healthcare delivery, enhancing digital interventions and scaling operations ensures long-term efficiency and growth.
Teladoc's international operations in Europe, South America and Asia provide a critical diversification edge as competition in the U.S. market intensifies. Its extensive global platform offers a competitive advantage in capturing international growth opportunities.
TDOC’s Earnings Surprise History
TDOC beat earnings estimates in three of the past four quarters and missed once, with an average surprise of 18.8%. The Zacks Consensus Estimate for 2024 revenues is pegged at $2.56 billion, while loss per share is at $5.81 due to incurring a massive goodwill impairment in the second quarter. The consensus mark for 2025 earnings suggests an 83.1% improvement.
Teladoc Health, Inc. Price and EPS Surprise
Teladoc Health, Inc. price-eps-surprise | Teladoc Health, Inc. Quote
TDOC: A Value-Driven Choice
Teladoc is trading at a discount compared to the industry average. It presents a compelling investment opportunity with its attractive forward 12-month price-to-sales ratio of 0.78, lower than the industry average of 0.84. The company has a Value Score of A.
In comparison, American Well Corporation and Hims & Hers Health are trading at 0.46X and 3.31X, respectively.
TDOC’s Risks
While Teladoc shows strong growth potential, investors should be mindful of several factors.
The virtual care market is becoming increasingly competitive, putting pressure on Teladoc’s pricing. The space attracted the retail behemoth Amazon.com, which combined a virtual care clinic with One Medical, its virtual and in-person primary care organization.
The rapid evolution of the telehealth market presents challenges. While demand surged during the pandemic, it has since tapered off as restrictions eased. To stay relevant, telehealth providers may need to adopt hybrid models that integrate virtual services with traditional in-person healthcare, offering a more comprehensive approach to patient care.
Teladoc has consistently reported significant losses over the past years. As of Sept. 30, 2024, the company’s accumulated deficit reached $16.2 billion, up from $15.2 billion at the end of 2023. These losses and deficits primarily reflect substantial investments in acquiring new clients, expanding its network of healthcare providers and enhancing its technology platform.
Teladoc’s ability to navigate these challenges will be crucial in sustaining its market position and achieving profitability in the long run.
Final Verdict: TDOC Stock Holds Promise
TDOC stands out as a leading global virtual healthcare provider with a compelling valuation and solid prospects for sustained membership growth. While current market challenges and company-specific risks warrant attention, Teladoc’s long-term growth potential remains strong. Its expanding product portfolio and AI-driven solutions position it to maintain a competitive advantage in the evolving healthcare landscape.
Overall, the outlook is largely neutral for TDOC shares. It currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.