Why Teladoc Health, Inc. (TDOC) Has Plenty of Upside Potential

Compared to others, Teladoc Health, Inc. (TDOC) is in a different league with regards to profitability, having net margins of -31.3%. To put some perspective around this, the industry’s average net margin is 5.14%. Also, it is trading at rather expensive levels at just over 3.71x price/book and 10.79x price/sales. TDOC’s ROE is -16.4%, which is also considerably worse than the industry’s ROE of 0.47%. It’s also very liquid in the near term, with a current ratio of 9. The stock has a debt/capital of 0.

TDOC’s 50 day simple moving average (SMA 50) price is $66.28 and its 200-day simple moving average (SMA 200) price is $58.8. The company’s stock currently has a total float of 66.01M shares. Its weekly volatility is hovering around 6.74% and felt 7.25% volatility in price over a month. On the upside, the share price will test short term resistance at around $57.47. On a downside, the stock is likely to find some support, which begins at $53.93. The failure to get near-term support could push it to $52.05.

Separately, it has been reported that multiple insider activity took place at Teladoc Health, Inc. (TDOC). SVP – Business Development Turitz Andrew sold 8,202 shares for $1,176 in transaction occurred on 2018/12/03. After making this transaction, the SVP – Business Development owns a direct stake of 526,076 shares, worth $65,633, as per the last closing price. On 2018/11/19 Gorevic Jason N, CEO at TDOC, dumped 35,000 shares at an average price of $54.8 per share. The selling total is valued at $28,250,129.

Chief Medical Officer, Levy Lewis had divested 1,284 shares through a trade on 2018/11/15. Following this activity, the insider holds 73,496 shares. Wall Street’s most bullish Teladoc Health, Inc. (NYSE:TDOC) analysts are predicting the share price to blow past $100 per share during the next 12 months. The current median share price forecast by them is $93.5, suggesting that the stock could increase 67.53% in that time frame. The average price target of $89.44 calls for a nearly 60.26% increase in the stock price.

It had seen a change in price target from analysts at Chardan Capital Markets, who reiterated the stock at Buy on November 02 but moved PT from $98 to $100. Analysts at Credit Suisse, started covering the stock on October 09 with a Neutral rating. Analysts at Leerink Partners, made their first call about the stock on August 16, recommending it is Outperform.

Teladoc Health, Inc. (NYSE:TDOC) reached $4.02B by 06-December-18 in the wake of -6.69% downturn. The shares gained some momentum after bears carried it down to $53.71. The final price for the day of 55.81 was still down from $57.25. The stock remained range bound between $53.71 and $57.25. Trading activity significantly improved as the volume at ready counter increased to 4,130,947 shares versus 1,648,835 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 1,349,101 shares. The stock is now 80.91% above against its bear-market low of $30.85 on January 19, 2018. It has retreated -59.56% since it’s 52-week high of $89.05 reached in October. Now the market price is up 70.15% on the year and up 60.14% YTD.

Shares of Teladoc Health, Inc. (TDOC) have dropped -14.% since the company’s last earnings report. Over the past 12 fiscal quarters, Teladoc Health, Inc. (NYSE:TDOC) has topped consensus earnings estimates in 8 quarters (66%), missed earnings in 4 quarters (33%), whereas at 0 occasion EPS met analyst expectations. TDOC last reported earnings on November 01, 2018 when it released Sep-18 results that exceeded expectations. The company raked in -$0.34 per share, -93.13% change on the same period last year. That was better than consensus for -$0.36. Revenue for the recent quarter stood at $110.96 million, up 62% on last year and above the $109.95 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $119.49 million to $120.9 million, which should be compared with $98.61 million generated last year. EPS is seen in a range of -$0.4 to -$0.22, against the -$0.26 reported a year ago.