Teladoc Share Forecast February 2022 – Time to Buy TDOC?
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Shares of multinational telemedicine and virtual healthcare company Teladoc (NYSE: TDOC) are in the green today, after closing at $80.34 as of February 1st (19:59 EST). Teladoc shares are down by more than 70% over the past 12 months. However, the company’s revenue grew by 81% year over year to $522 million. This has led investors to expect more big growth when it reports in Q4.
Teladoc – Technical Analysis
The financial statement released by Teladoc indicates a market cap of $12.861 billion with total assets worth $17.653 billion. Revenue for 2020 was at $1.09 billion with a profit margin of -44.35% compared to $553.31 million in 2019.
Moving averages such as Exponential Moving Average (10)(75.24), Simple Moving Average (10)(73.63), Exponential Moving Average (20)(78.65) and Simple Moving Average (20)(78.01) are indicating a buy action. Oscillators such as Relative Strength Index (14)(48.37), Stochastic %K (14, 3, 3)(43.42), Commodity Channel Index (20)(32.10), Average Directional Index (14)(34.10) and Awesome Oscillator(−11.90) are neutral.
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Recent Developments
Teladoc deals with telehealth where subscribers can book remote visits with the clinicians contracted by the company. It can also bill the patient’s insurance if necessary. The company’s clients also include health insurers, healthcare systems, and employers besides individual customers. It had a total membership of 73 million people in 2020 and facilitated 10.6 million telehealth visits throughout the year. Teladoc expects to end the quarter with 6.5 million subscribers and more than 14.7 million telehealth visits.
The pandemic played a key role in bolstering the company’s membership numbers, not to mention its revenue. Quarterly revenue is up by 233% since January 2020. Management wants to report revenue of $2 billion in 2021 and $2.6 billion in 2022. Teladoc’s prospects look good for the future as people’s desire to use telehealth services is unlikely to evaporate. Over the past 3 years, the company’s quarterly gross profits have risen by 320% in spite of not reaching profitability.
Should You TDOC Shares?
Investors interested in TDOC shares should consider a few risks. Firstly, Teladoc’s membership growth will not return to its early pandemic pace. The growth was due to millions of people seeking medical assistance without going to doctors’ offices. Secondly, Teladoc doesn’t have a good track record of being profitable. Expenses have actually risen slightly as a percentage of its quarterly revenue since January 2020.
To rectify this problem, Management has planned to increase its average annual revenue per subscriber by as much as 25%. They will do this by offering a wider range of services, potentially including remote monitoring of a patient’s medical sensors. Analysts expect it to grow its membership base by a few percentage points per year ever after the pandemic.
Currently, Teladoc shares are trading below where they began in 2020. But analysts expect that this decrease won’t last forever. Its share price will return to growth as a result of a strong earnings performance. Teladoc is expected to report its full-year earnings for 2021 in late February. The market will be extra vigilant to see whether Teladoc’s membership growth and revenue figures are in line with what management predicted a year ago.
Investors should thus wait for the stock to stop shedding value steadily before buying. This is advised even if financial metrics are still trending favourably. More risky investors may take a chance and buy Teladoc shares, hoping to gain significantly if things go right.
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