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Teladoc (TDOC) Stock Drops Despite Market Gains: Important Facts to Note

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In the latest trading session, Teladoc (TDOC - Free Report) closed at $8.57, marking a -4.88% move from the previous day. This change lagged the S&P 500's daily gain of 0.37%. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, added 0.71%.

Shares of the telehealth services provider witnessed a gain of 15.22% over the previous month, beating the performance of the Medical sector with its gain of 5.9%, and the S&P 500's gain of 4.26%.

The investment community will be paying close attention to the earnings performance of Teladoc in its upcoming release. On that day, Teladoc is projected to report earnings of -$0.26 per share, which would represent a year-over-year decline of 36.84%. In the meantime, our current consensus estimate forecasts the revenue to be $625.56 million, indicating a 2.33% decline compared to the corresponding quarter of the prior year.

TDOC's full-year Zacks Consensus Estimates are calling for earnings of -$1.17 per share and revenue of $2.52 billion. These results would represent year-over-year changes of +80.07% and -1.82%, respectively.

Investors should also note any recent changes to analyst estimates for Teladoc. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Teladoc presently features a Zacks Rank of #2 (Buy).

The Medical Services industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 143, placing it within the bottom 43% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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