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Teladoc Stock is On A Tear

by Alan Daniel
Teladoc Stock is On A Tear

Let’s get real.

Healthcare is expensive in the United States. Going to the doctor for some minor health-related problems will cost you an arm and a leg.

Politicians like Obama have tried to do something about the state of healthcare today with the Affordable Healthcare Act, widely known as Obamacare.

That didn’t fix the problem.

Healthcare is still costly.

Luckily, a few companies are stepping into the sector to innovate and make things better.

One of these companies is Teladoc Health, Inc. (TDOC), a company that is aligned with many healthcare-focused investors.

First, investors love it because it meets a real need and strives to fix the problems present within a sector that affects all individuals. Remember that healthcare is not a nice to have; it is a must-have. Teladoc is an innovative company in a real market that must have disruptive players to bring about higher quality cost-effective services to a massive population.

Second, they also love it because it is in an emerging niche, the telehealth services segment of healthcare.

Telehealth services are bound to grow as the industry helps to alleviate deep-rooted problems like access and the cost of healthcare.

Third, it is innovative in that you can access a U.S. board-certified, state-licensed doctor with your chosen device and medium. The firm also has a simple mobile app to provide simplicity to Teladoc users. Teladoc members can sign in, update basic and medical information, and get started. You can then open up Teladoc when you feel down, request a visit, choose your state, and connect via phone call or video call. Scheduling is easy and straightforward and helps to solve non critical issues.

Fun Facts about Teladoc

Teladoc was founded in 2002.

The healthcare services firm and was based in Dallas, Texas, before moving to New York.

It is in the remote medical care industry.

Teladoc Health, Inc and was a small-cap last year. The stock is part of the Russell 2000 Index.

Brands that are a part of the firm include Teladoc, Advance Medical, Best Doctors, Better Help, HealthiestYou, and MedecinDirect.

The company has a presence in more than 25 countries and serves over 20 million members.

What Should You Like About Teladoc?

Revenues are on the rise at Teladoc Health, Inc (TDOC). Revenue growth is over 30% from January to September 2019. Teladoc use continues to rise, and this growth translates directly to an increase in the Teladoc stock price.

Teladoc (TDOC) is up over 70% in 2019.

But why?

Remember that Teladoc Health, Inc (TDOC) was one of the pioneers in the telehealth segment of healthcare. The company took its pioneering headstart and ran with it. Teladoc didn’t look back. The firm gained knowledge, learned how to grow and become relevant and built out a brand and infrastructure to stick around for the long-term.

What I love most about Teladoc is that it doesn’t just rest on its laurels in the domestic market.

No, it continues to expand and invest in growth internationally.

Teladoc already has partnerships with insurance companies such as Aetna who provide Teladoc in all 50 states. Healthcare companies such as United Health Group, Oscar, and even governmental plans such as Medicare Advantage will start to integrate Telehealth services as part of its offerings.

Further, it is looking at adding more value by making investments in companies such as Vida Health, gearing up to cater to mental health issues, and other aspects of healthcare. Remember that Teladoc also provides benefits to federal employees as part of a Federal plan and even has a footprint in Tricare.

The healthcare firm is also innovating in other areas such as helping people with their diet by rolling out Teladoc Nutrition.

Daniel Trencher, an SVP at Teladoc notes “an abundance of data shows the value of a tailored nutrition plan to improving outcomes for chronic and acute health conditions, and we’ve heard overwhelmingly from clients the benefits they see in this new service.”

Lastly, Teladoc can compete on price and provides healthcare at a lower price than competitors like Doctor on Demand.

But wait, let’s quickly talk about the downside.

So, what’s the downside?

Teladoc is still unprofitable.

Yet, financials are improving.

The company is beating estimates and investors are likely to optimize for growth with this vital company.

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