Teladoc Leads Telehealth Thanks to its Virtual Care Solution
Teladoc Inc. TDOC, with its expansive virtual care delivery solution, is a niche player in the telehealth industry.
With total addressable market of $57 billion, the industry remains largely underpenetrated and provides enough scope for growth to Teladoc.
In order to expand in the industry, telehealth provider Teladoc has collaborated with new accounts and channels, tied up with health plans, and made efforts to increase utilization.
It also boasts expanded specialties across behavioral health, dermatology, expert opinion and specialty advice, diabetes, and more.
It has also expanded scope of its products and services via health kiosks, mobile apps, hubs, biometric devices and at-home tests.
The company broadened its international footprint with the purchase of Advance Medical in June this year.
Other acquisitions such as Best Doctors, HealthiestYou, StatDoc and BetterHelp, completed in the past three years have aided the company.
Numerous acquisitions and business investments made by Teladoc are reaping benefits, as reflected in an increase in membership, visits and client base. The company has witnessed revenue CAGR of 74% between 2014 and 2017. Revenues skyrocketed 110% year over year in the first half of 2018.
The company has been reporting loss for the past several quarters because of high expenditure due to investments. It anticipates reaching breakeven EBIDTA levels this year, which has impressed investors.
Year to date, the stock has gained an impressive 116% compared with the industry’s growth of 28.9%. We do not see the stock losing its momentum anytime soon, given its strong operating fundamentals.
Teladoc currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the healthcare space are BioTelemetry, Inc. BEAT, Medpace Holdings, Inc. MEDP and HealthEquity, Inc. HQY. While BioTelemetry and Medpace currently carry a Zacks Rank #1 (Strong Buy), HealthEquity carries a Zacks Rank #2 (Buy).
BioTelemetry, Medpace and HealthEquity beat estimates in three out of the four quarters, with an average positive surprise of 30.86%, 23.97% and 15.73%, respectively.
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