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Teladoc (TDOC) Gains But Lags Market: What You Should Know

Zacks Equity Research

In the latest trading session, Teladoc (TDOC) closed at $118.24, marking a +1.28% move from the previous day. This move lagged the S&P 500's daily gain of 6%. At the same time, the Dow added 5.2%, and the tech-heavy Nasdaq gained 6.23%.

Coming into today, shares of the telehealth services provider had gained 4.45% in the past month. In that same time, the Medical sector lost 23.01%, while the S&P 500 lost 29.18%.

TDOC will be looking to display strength as it nears its next earnings release. In that report, analysts expect TDOC to post earnings of -$0.35 per share. This would mark year-over-year growth of 18.6%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $170.28 million, up 32.44% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$1.12 per share and revenue of $722.75 million. These totals would mark changes of +18.84% and +30.62%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for TDOC. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 has moved 1.55% higher. TDOC is currently sporting a Zacks Rank of #3 (Hold).

The Medical Services industry is part of the Medical sector. This group has a Zacks Industry Rank of 102, putting it in the top 40% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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