Strength Seen in Teladoc (TDOC): Can Its 5.7% Jump Turn into More Strength?
Teladoc (TDOC) shares soared 5.7% in the last trading session to close at $27.34. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6.1% gain over the past four weeks.
Shares of Teladoc jumped after it announced an expansion of services to weight management as well as prediabetes programs. The new services, which incorporate prescribing new weight-loss medications, are expected to boost the company's addressable market size. The services are likely to be available from the third quarter.
This telehealth services provider is expected to post quarterly loss of $0.50 per share in its upcoming report, which represents a year-over-year change of -6.4%. Revenues are expected to be $617.47 million, up 9.2% 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 belongs to the Zacks Medical Services industry. Another stock from the same industry, Apollo Medical Holdings, Inc. (AMEH), closed the last trading session 1.9% higher at $40.24. Over the past month, AMEH has returned 7.6%.
For Apollo Medical Holdings, Inc. , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.35. This represents a change of +12.9% from what the company reported a year ago. Apollo Medical Holdings, Inc. currently has a Zacks Rank of #4 (Sell).
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Teladoc Health, Inc. (TDOC) : Free Stock Analysis Report
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