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Teladoc (TDOC) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research

In the latest trading session, Teladoc (TDOC) closed at $223.98, marking a -1.18% move from the previous day. This change lagged the S&P 500's 0.58% gain on the day. Elsewhere, the Dow gained 0.62%, while the tech-heavy Nasdaq added 0.24%.

Heading into today, shares of the telehealth services provider had gained 14.43% over the past month, outpacing the Medical sector's gain of 3.09% and the S&P 500's gain of 5.34% in that time.

Investors will be hoping for strength from TDOC as it approaches its next earnings release, which is expected to be July 29, 2020. On that day, TDOC is projected to report earnings of -$0.23 per share, which would represent year-over-year growth of 43.9%. Our most recent consensus estimate is calling for quarterly revenue of $220.22 million, up 69.04% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$1.15 per share and revenue of $851.16 million. These totals would mark changes of +16.67% and +53.83%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for TDOC. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.37% lower within the past month. TDOC is currently a Zacks Rank #3 (Hold).

The Medical Services industry is part of the Medical sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 28% 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.

To follow TDOC in the coming trading sessions, be sure to utilize Zacks.com.


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