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Teladoc (TDOC) Surges 8.8%: Is This an Indication of Further Gains?

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Teladoc (TDOC - Free Report) shares rallied 8.8% in the last trading session to close at $11.97. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 12.5% gain over the past four weeks.

Teladoc Health rallied for the third consecutive day, fueled by optimism around its Catapult Health acquisition and later bolstered by Citron Research’s endorsement, calling it an "Under-the-Radar AI Play." The company remains focused on strategic tech investments, particularly in AI, to drive profitability.

This telehealth services provider is expected to post quarterly loss of $0.21 per share in its upcoming report, which represents a year-over-year change of -23.5%. Revenues are expected to be $639.5 million, down 3.2% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Teladoc, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on TDOC going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Teladoc is part of the Zacks Medical Services industry. Sonida Senior Living (SNDA - Free Report) , another stock in the same industry, closed the last trading session 2.6% lower at $24.35. SNDA has returned 17.2% in the past month.

For Sonida Senior Living, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.71. This represents a change of +67.3% from what the company reported a year ago. Sonida Senior Living currently has a Zacks Rank of #3 (Hold).


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