Teladoc Health (NYSE: TDOC) offers virtual health care services in the United States and abroad, with telehealth solutions for primary and specialty care as well as chronic care and mental health care.
The pandemic has propelled virtual telehealth business to an all-time high, pushing Teladoc’s stock from $83 in early 2020 to around $300 in mid-2021, due to an increase in demand for telehealth services. telehealth. Investors fear customers may no longer need telehealth services now that shutdowns have eased, hurting Teladoc’s share price. However, its future prospects make this title a good deal to buy now.
Teladoc will release its first quarter results on April 27. Let’s see if Teladoc could manage another good quarter and what makes it a great buy today.
Will it be another good quarter for Teladoc?
Investors are taking a second look at many stocks that have received a pandemic-induced boost. We are seeing this hesitation in the current decline in growth stocks. But it looks like the telehealth trend is here to stay. Forbes reported that a recent global survey showed that about 63% of respondents who used telehealth services in the past agreed to use them again after the pandemic. Teladoc has a first-mover advantage in this area and is poised for a promising future.
Beyond that, the telehealth company shows excellent financial performance. In 2021, Teladoc’s total revenue jumped 86% year-over-year (YOY) to $2 billion. Visits to its platform jumped 38% to 15.4 million. Although not yet profitable, Teladoc has managed to reduce its net loss per share from $5.36 in 2020 to $2.73 in 2021. The company’s operating cash flow has also increased to $193 million, from negative $53 million. in 2020.
This steady improvement in performance means that Teladoc is well on the way to success. For comparison, Teladoc’s peer, American well (NYSE:AMWL)which recorded 5.8 million total visits last year, generated $253 million in total revenue in 2021, an increase of only 3% year-over-year.
On track to achieve profitability
According to indications published in February, Teladoc expects total visits to its platform to be between 4.3 and 4.5 million in the first quarter, with revenues between 565 and 571 million. of dollars. Teladoc also expects the net loss to be between $0.60 and $0.50 per share, compared to $1.31 per share in the same period last year. This could be a significant improvement, as reducing losses is a good sign for the business.
Wall Street expectations are in line with company guidance. Analysts expect total revenue to be around $569 million, with a net loss of $0.57 per share in the quarter.
Teladoc appears poised to achieve these goals, especially in light of new partnerships and virtual care offerings that could boost the company’s brand awareness and reach. In February, Teladoc partnered with Amazon (NASDAQ: AMZN) to launch “voice-activated general medical virtual care on supported Echo devices”. This service will be primarily for general medical needs. This collaboration could prove very beneficial for Teladoc in the years to come.
Additionally, Teladoc recently launched Chronic Care Complete, a solution that will provide personalized support for patients with multiple chronic conditions. This offer could be a hit with the aging population, which may be reluctant to visit hospitals, especially in times of coronavirus.
A cheap stock poised to generate fruitful returns
A smart way to make investment money is to buy a growth stock with great financials at a discount and hold it for the long term. Virtual telehealth services provide patients with a more pleasant medical experience that saves time and money – which is why I believe the business won’t go away even in the post-pandemic era.
Analysts have high hopes for the stockexpecting it to jump 63% in the next 12 months, which I think is possible. The stock is down close 66% below its 52-week high of $192.11, making it a good time to grab this healthcare stock.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a board member of The Motley Fool. The Motley Fool owns and recommends Amazon and Teladoc Health. The Motley Fool has a disclosure policy.
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