Teladoc Health Stock Price Forecast October 2021 – Time to Buy TDOC Stock?

Virtual Healthcare company Teladoc Health (TDOC) was trading almost 4% lower in pre-market today. The stock has fallen 30% so far in 2021 and trades at less than half of the 52-week highs that it hit earlier this year.

TDOC is among the so-called “stay-at-home” stocks which benefited from the lockdowns last year. As the lockdowns have been lifted the growth rates for these companies have also come down. What’s the forecast for Teladoc Health stock and should you buy the dip?

Teladoc Health reports this quarter earnings

Teladoc Health reported its third-quarter earnings yesterday after the close of markets. The company’s revenues increased 81% year-over-year to $522 million in the quarter. Looking at the revenue breakup, the company’s Access Fee revenues increased 113% in the US markets and 19% in international markets. Overall, the Access Fee revenues almost doubled as compared to the corresponding quarter last year.

However, the growth in Visit Fee revenues was smaller and they increased 18% overall. The growth in US markets was 18% while international markets reported a 22% growth. The company reported total third-quarter visits of 3.9 million which was 37% higher than the corresponding quarter last year. Meanwhile, the company reported US paid memberships of 52.5 million in the quarter which was only 2% higher than the third quarter of 2020.

68% of all retail investor accounts lose money when trading CFDs with this provider

TDOC reports massive loss

TDOC reported a net loss of $84.3 million in the quarter which was wider than the $35.9 million loss in the corresponding period last year. Nonetheless, its earnings were better than expected. However, the stock is tumbling despite earnings release. It had fallen sharply after the second-quarter earnings also posting an earnings miss. This is the fourth straight quarter when Teladoc Health has fallen after the earnings report.

Teladoc Health expects to post revenues of $536-$546 million in the fourth quarter which is similar to the consensus estimates at the mid-point. Expressing optimism over the performance TDOC CEO Jason Gorevic said “The third quarter was notable in expanding relationships with a number of leading national health plans with the successful launch of our Primary360 offering which reimagines the primary care model and delivers increased access and engagement to members.”

Teladoc Health stock price forecast

Wall Street analysts have a split rating on Teladoc Health. Of the 31 analysts covering TDOC stock, 18 rate it as a buy while 12 have a hold rating. One analyst has a sell rating. TDOC’s median target price of $180 is a premium of 30% over current prices. The street high target price of $291 implies an upside of 110% while the street low target price of $125 is a discount of 9.7%.

TDOC stock target price

Earlier this month, Wells Fargo initiated coverage on TDOC stock with an overweight rating and a target price of $156. “While this ‘slowdown’ may be giving investors pause, we think the pace of member growth over the past few years was clearly not going to be sustainable. That said, we believe that TDOC still has significant opportunity (~65M) to expand membership with existing health plan relationships,” said Analysts Stephen Baxter and Stan Berenshteyn in their note.

While the COVID-19 boost has died down for Teladoc Health, Wells Fargo remains optimistic about the company. “We like that TDOC has exposure to several key telehealth product categories and think the company is well positioned to support the virtual care ambitions of its client base as something close to a one-stop shop,” added the analysts in their note.

Cathie Wood, who has a flair for disruptors, is among those who are bullish on Teladoc Health stock. This year, she has been buying names like Coinbase and Robinhood after they fell after the listing.

Teladoc Health stock long term forecast

The long-term forecast for Teladoc Health stock looks positive as the healthcare market also moves towards digitization. Wells Fargo estimates the company’s total addressable market at $120 billion and forecasts an organic annualized revenue growth in excess of 20% for the next five years.

TDOC stock technical analysis

TDOC stock was facing strong resistance at the 50-day SMA (simple moving average). It had recently crossed above the price channel but looks set to plunge below the price level in today’s trade. The stock also trades below the 200-day SMA.

Should you buy Teladoc Health stock

Teladoc Health stock trades at an NTM (next-12 months) EV-to-sales multiple of around 10x. The company has been posting losses so we can’t value it based on profitability metrics. That said, the valuations look reasonable looking at the growth outlook for the virtual healthcare industry.

Buy TDOC Stock at eToro from just $50 Now!