TDOC Stock Forecast: Teladoc Health Stock Set to Deliver Triple-Digit Returns

TDOC Stock Forecast
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TDOC Health Stock Gains on Healthcare Disruption

Technology has permeated every facet of our lives, and healthcare is no different. In fact, it is leading to a lot of convenience as well as disruption. There are many players trying to redefine healthcare using technology.

By choosing healthcare tech stocks carefully, investors can reap handsome returns in the long term.

A case in point is TDOC stock. Teladoc Health Inc (NYSE:TDOC) is the global leader in virtual care, helping millions of people resolve their healthcare needs without leaving the comfort of their homes.

Imagine not being able to visit hospitals or not having enough money to spend on expensive treatments. With Teladoc’s platform, patients can get quality healthcare at affordable prices. They can speak to a licensed doctor by Web, phone, or mobile app in less than 10 minutes.

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The telemedicine company uses telephone and video-conferencing technology to provide on-demand remote medical care through mobile devices. Teladoc Health serves millions of people across 125 countries and delivers care in more than 20 languages.

It provides virtual access to high-quality expertise, with a portfolio of services that cover 450 medical sub-specialties. These could range from non-urgent ones, like the flu, to complicated medical conditions, like cancer and congestive heart failure.

TDOC stock has the potential to deliver triple-digit returns in the coming years as the market continues to grow for virtual care services.

This is because the U.S. healthcare system is experiencing a growing crisis of access, cost, and quality of care. There are inefficiencies in today’s healthcare system and barriers between participants. This means more growth for Teladoc Health stock as the business expands.

According to the National Association of Community Health Centers (NACHC), about 62 million people in the United States currently have no or inadequate access to primary care as a result of a shortage of physicians. (Source: “Teladoc Health Annual Report 2017,” Teladoc Health Inc, last accessed January 23, 2019.)

Moreover, as per the Center for Disease Control and Prevention (CDC), there are approximately 1.3 billion ambulatory care visits in the United States per year. The company management estimates that approximately 417 million, or 33%, of these visits could be treated through telehealth.

The U.S. healthcare system is burdened by inefficiencies and extreme variations in access, cost, and quality of care. Teladoc Health is trying to fill this gap. This bodes well for TDOC stock.

The company is an industry leader with strong competitive positioning. It has an expansive portfolio of virtual care services, which it continues to expand.

About a week ago, Teladoc Health announced the addition of its unique virtual back pain treatment program, “Teladoc Back Care.”

Through a partnership with Telespine, this personalized and digital video exercise program would involve consultation with certified coaches as well. At $87.0 billion, back pain is estimated to be the third-largest medical cost driver in the U.S. (Source: “Teladoc Health Expands Continuum of Services with Addition of Back Care Solution,” Teladoc Health Inc, January 17, 2019.)

Teladoc Health is transforming how people access healthcare around the world. It has been growing its revenue consistently, as the following table shows.

Fiscal Quarter 9/30/2017 12/31/2017 3/31/2018 6/30/2018 9/30/2018
Revenue (Millions) $68.7 $77.1 $89.6 $94.6 $111.0
Growth 12.4% 16.2% 5.5% 17.3%

(Source: “Teladoc Health’s Financial Info Quarterly results,” Teladoc Health Inc, last accessed January 23, 2019.)

Teladoc Health delivered strong results for the third quarter. Revenue grew 62% year-over-year to $111.0 million. Total paid memberships grew 18% over the year to 22.6 million. Third-quarter total visits grew 110% year-over-year to 641,000.

Jason Gorevic, the CEO of Teladoc Health, said that the demand for the company’s comprehensive suite of virtual care services has been robust across channels and geographies.

“We have a tremendous growth opportunity in front of us as the entry point into the health care system where individuals can go for guided access to a fully integrated, high-quality care experience,” said Gorevic. (Source: “Teladoc Health Announces Third Quarter 2018 Financial Results,” Teladoc Health Inc, November 1, 2018.)

The improving business has been pushing TDOC stock higher, which has gained about 73% over the last one year. Teladoc Health stock has moved up by almost 40% since we covered it in Profit Confidential in March 2018.

Teladoc-Stock-Graph-Chart

Chart courtesy of StockCharts.com

Analyst Take

Teladoc Health is successfully transforming how people access and experience healthcare, with a focus on high quality and lower costs.

The telemedicine expert is creating a new kind of healthcare experience by helping more people access high-quality healthcare through virtual care.

By combining the best of data and analytics, the fast-growing telehealth giant has been providing a great user experience and a highly flexible technology platform.

The company has delivered millions of medical visits to patients around the globe, and this number will likely continue to go up. Investors might want to consider Teladoc Health stock on any sign of weakness.