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TDOC Stock: Teledoc to Release with New Product Features


Teledoc Health (NASDAQ:TDOC) became a favorite of the Covid-19 pandemic in 2020. Barely a year later, when the stock peaked at $ 308 earlier this year, TDOC’s stock is facing huge headwinds. Dynamic investors moved on, leaving Teledoc to prove its acquisition of Livongo will accelerate growth.

Source: Piotr Swat / Shutterstock.com

Teledoc has a long way to go. Impatient shareholders must be willing to wait for the situation to turn around.

81% growth rate to increase TDOC stock

In the third quarter, Teledoc posted total revenue up 81% year-on-year to $ 522 million. However, the company lost 53 cents per share on a GAAP basis. The cabinet highlighted its new agreements with CVS Health (NYSE:CVS) and Centene Company (NYSE:CNC) in the period. They will provide the Primary 360 from Teledoc Health to their patients.

CEO Jason Gorevic said CVS, through its self-insured clients Aetna, has deployed Primary360. These are virtual foreground designs. As customers buy into the offering, CVS will see efficiencies.

Teledoc’s “whole person” suite of capabilities enables healthcare providers to support both physical and mental health patients. Expect registration for care for multiple chronic diseases. This will accelerate Teledoc’s revenue growth in the years to come. For the rest of the year and until 2022, the demand for such innovations will increase.

Teledoc will benefit from the worldwide deployment of its solution by Centene and Aetna. Next year CEO Gorevic said the company expects its product line to have a significant impact on overall finances.

Opportunity

Teledoc expects fourth quarter revenue of between $ 536 million and $ 546 million. While it will lose between 73 cents and 53 cents, the improved pipeline is a positive tailwind. For example, the company faces slow growth as it enters international markets. This is offset by strong growth in the hospital and healthcare systems markets. If Teledoc dominates chronic care solutions offerings without significant competition, this segment will add around $ 2.6 billion in revenue next year.

Teledoc’s transformation of the healthcare experience will only strengthen its moat. It disrupts the physical delivery system in health care. As medical providers integrate the Teledoc system, data collection deepens. This gives Teledoc and its customers a rich set of data analyzes. From there, they can further transform the primary care experience for the better. Patients get better primary care and favorable health outcomes.

Investors should expect Teledoc to show strong growth in the Primary360 product. In addition, myStrength Complete, launched on May 11, 2021, will enhance its digital solutions. Healthcare providers can provide things like Dialectical Behavior Therapy and Cognitive Behavioral Therapy while Teledoc connects the network of expert psychologists and Masters-level social worker therapists and psychiatrists. No other system vendor offers something like this.

Risks of TDOC stock

Teledoc customers may find that the savings are not large enough to justify additional investments, however, it will need to work more closely with them to identify product gaps. It will also have to increase research and development spending. As he innovates in his product, he will tackle the efficiency issues that customers face.

Teledoc’s stock market rating is fair. According to Stockrover, the TDOC share scores slightly higher in terms of quality, relative to value and growth. The acquisition of Livongo weighs on the balance sheet. In addition, the productivity of the sales team must improve – as the staff return to the office, Teledoc will achieve a stronger sales cycle. After training the brokers, expect the quality and growth scores to increase from here. Teledoc’s value score is 55/100. This is a typical number for a growing business. Ideally, its growth score increases to further justify the premium of the stock compared to the S&P 500.

Just value

12 analysts rate Teledoc as a buy stock, compared to nine who see it as a pending stock. Per Tipranks, the average price target is $ 169.48 and ranges from $ 125 to $ 215.

The stock market is ruthless on money losing health information service stocks. The sooner Teledoc breaks even, the sooner the stock can rebuild an uptrend.

Shareholders who believe that Teledoc stock will trade in a range of $ 120 to $ 160 could purchase covered call options. Options sellers would earn income by owning the shares. They will only be called back if the stock is trading above the strike price.

Your takeaway meals

Teledoc has almost the highest market capitalization in its industry. Alone Veeva Systems (NYSE:VEEV) is bigger. The integration of Livongo and its staff by the company will take time to progress. By the next fiscal year, Teledoc’s integration of Livongo functionalities into its products will bear fruit. More customers will buy its product line, thus increasing revenue.

As Teledoc gets closer to profitability, its stock will explode upwards.

As of the publication date, Chris Lau does not have (directly or indirectly) any position in any of the stocks mentioned in this article. The opinions expressed in this article are those of the author, subject to the publication guidelines of InvestorPlace.com.

Chris Lau is a contributing author for InvestorPlace.com and many other financial sites. Chris has over 20 years of experience investing in the stock market and leads the Do-It-Yourself Value Market on Seeking Alpha. He shares his stock picks so readers get original information that helps improve returns on investment.


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