Shareholders Are Raving About How The Teladoc Health (NYSE:TDOC) Share Price Increased 802%
For many, the main point of investing in the stock market is to achieve spectacular returns. While the best companies are hard to find, but they can generate massive returns over long periods. Don't believe it? Then look at the Teladoc Health, Inc. (NYSE:TDOC) share price. It's 802% higher than it was five years ago. And this is just one example of the epic gains achieved by some long term investors. On top of that, the share price is up 15% in about a quarter. But this could be related to the strong market, which is up 13% in the last three months.
It really delights us to see such great share price performance for investors.
See our latest analysis for Teladoc Health
Because Teladoc Health made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
In the last 5 years Teladoc Health saw its revenue grow at 44% per year. That's well above most pre-profit companies. Arguably, this is well and truly reflected in the strong share price gain of 55%(per year) over the same period. Despite the strong run, top performers like Teladoc Health have been known to go on winning for decades. On the face of it, this looks lke a good opportunity, although we note sentiment seems very positive already.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
Teladoc Health is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. You can see what analysts are predicting for Teladoc Health in this interactive graph of future profit estimates.
A Different Perspective
We're pleased to report that Teladoc Health shareholders have received a total shareholder return of 181% over one year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 55% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand Teladoc Health better, we need to consider many other factors. For example, we've discovered 2 warning signs for Teladoc Health that you should be aware of before investing here.
Of course Teladoc Health may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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