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Should I Invest in Teladoc Stock?

Teladoc Health is a leader in the virtual health care industry, something that seems to have become very popular lately. Their stock value shot up due to COVID-19 and has since calmed down. Is it still worth investing in now?


Teladoc Health, Inc.
company nameTeladoc Health, Inc.
sectorHealthcare
industryHealth Information Services
address2 Manhattanville Road, Purchase, NY, United States
countryUnited States
websitehttp://www.teladochealth.com

Teladoc Health is a big player in the new industry of virtual healthcare. Like many places, the healthcare industry went through an unforeseen shift and became more online-oriented due to the pandemic.

Teladoc Health (TDOC on the NYSE) has seen a very interesting year. While the COVID-19 pandemic had the world shut down and everyone staying inside, the Teladoc Health stock price was on a rapid rise.

Throughout the year 2020, we saw the stock price climb and eventually reach a peak of $294.54 in February of 2021. Investors had struck gold.

But since February, Teladoc stock has been on a steady decline. Dipping down and hovering between $120-$150, even reaching a low of $103.23 this month.

So, is Teladoc Health a buy right now, or should you pass?

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About Teladoc Health

Teladoc Health provides virtual healthcare visits from various health professionals. Essentially virtual doctor visits. They work with physicians, therapists, psychiatrists, and more to provide a range of online services for clients.

The company was founded in 2002 and went public on the New York Stock Exchange in 2015.

In July of 2020 Teladoc announced their acquisition of InTouch Health, another big player in the virtual health care world. Teladoc has big plans.

In October of 2020, they had another big announcement. They completed a merger with Livongo. The merger took three months and made it clear that Teladoc has big ambitions for the future.

With these big moves all happening in the last year, Teladoc is very dedicated to dominating the virtual healthcare market and has no plans of slowing down. They believe in themselves, and maybe that says something.

Teladoc had 51.5 million paid memberships as of their first quarter of 2021. A 20% growth over the last year.

In their 2021 first-quarter report, they predict their total revenue to be in the range of $1,970 million to $2,020 million. And they predict to add another 12.5 to 13.5 million visits to their virtual facilities.

A lot of Teladoc’s future outcomes will be affected by how the worldwide pandemic will continue and the lasting effects it will have.

Let’s look at a few reasons for and against buying Teladoc stock right now.

Bull Case

Here are a few reasons it might be worth investing in Teladoc:

  • To start with the obvious, Teladoc stock price is the lowest it has been since the pandemic began. If you wanted to jump on while the price is right, now might be the time.
  • The pandemic is not over. With cases still rising in some parts of the world, virtual online health care is still a safer option for many people.
  • The world has changed. With the popularity of virtual products rising significantly because of the pandemic, Teladoc might become even more profitable as time goes on.
  • Teladoc is not slowing down. Given their very recent acquisition and merger, it is obvious that Teladoc is gaining ground and getting bigger. This could be a sign of good things.
  • Teladoc’s predictions for the year. The amount of revenue Teladoc predicts to bring in and the number of new users they are predicting is a solid sign for an upward trend.
  • Year over year growth. Teladoc is not only predicting a solid amount of growth, but they have made strides in revenue and user base from last year to this year. Another good omen.
  • International expansion. The past year has seen mainly growth in America. As Teladoc starts rolling out in other countries, it could create another boom like we saw earlier this year.

Bear Case

There are always positives and negatives to consider when investing. Let’s look at some reasons you might want to pass on Teladoc stock:

  • Maybe it was a fad? Judging by how sharply Teladoc stock price shot up, and how fast it fell, it could have all been a spiking trend and could be over now.
  • The world is opening back up. As the world opens and restrictions ease, people might be more willing to go to in-person doctor visits. They could be tired of doing everything online.
  • It might get even lower. The stock price has consistently lowered throughout the past year. If you want to buy in at the absolute lowest price possible, it might pay out to wait just a little longer.

Teladoc Competitors

HHims & Hers Health, Inc.
$4.98
SymbolHIMS
Price$4.98
Change$0.31
Change %5.86%
Volume$1,917,473.00
Marketcap1.02B
AAmerican Well Corporation
$4.27
SymbolAMWL
Price$4.27
Change$0.37
Change %7.97%
Volume$2,686,178.00
Marketcap1.11B
O1Life Healthcare, Inc.
$11.26
SymbolONEM
Price$11.26
Change$0.905
Change %7.44%
Volume$3,606,001.00
Marketcap2.15B
SSharecare, Inc.
$3.31
SymbolSHCR
Price$3.31
Change$0.28
Change %7.80%
Volume$1,348,884.00
Marketcap1.12B

Final Verdict

As with most stock market investments, things depend on how much risk you are willing to take. Teladoc has grown exponentially in the past few years as a company. They are one of the biggest players in the virtual healthcare world.

But just because a company had a moment in the limelight, does not mean it can last forever. Like most that are related to the COVID-19 pandemic, things are hard to predict.

Teladoc is confident that their company will continue to succeed and grow. They are spreading overseas and investing time and money in other countries, which could be a very good sign for investors.

Given the way the world has changed over the past year, Teladoc has found themselves in a good spot in a very new market, and they occupy a large portion of that market. They could just be going through a rough patch right now.

But many experts are also predicting that the stock price will continue to fall and won’t return to the value that we saw earlier this year.

For those who believe that the future is moving in a more virtual world, Teladoc could be a good stock to buy. But if you think the world will return entirely to how it was several years ago, maybe skip out on this one.

Should you invest $1,000 in Teladoc right now?

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