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Why Teladoc (TDOC) Dipped More Than Broader Market Today

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Teladoc (TDOC - Free Report) closed at $7.57 in the latest trading session, marking a -5.38% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.34% for the day. Meanwhile, the Dow experienced a drop of 0.94%, and the technology-dominated Nasdaq saw an increase of 0.16%.

Coming into today, shares of the telehealth services provider had gained 3.9% in the past month. In that same time, the Medical sector gained 0.82%, while the S&P 500 gained 1.19%.

The investment community will be paying close attention to the earnings performance of Teladoc in its upcoming release. The company is forecasted to report an EPS of -$0.19, showcasing a 32.14% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $634.53 million, indicating a 0.93% decline compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of -$1.19 per share and revenue of $2.52 billion, which would represent changes of +79.73% and 0%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Teladoc. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Teladoc boasts a Zacks Rank of #4 (Sell).

The Medical Services industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 184, positioning it in the bottom 25% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks 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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