Teladoc (TDOC) Suffers a Larger Drop Than the General Market: Key Insights

Teladoc (TDOC) closed at $5.42 in the latest trading session, marking a -3.39% move from the prior day. This move lagged the S&P 500's daily loss of 1.36%. At the same time, the Dow lost 1.64%, and the tech-heavy Nasdaq lost 1.46%.

Shares of the telehealth services provider witnessed a gain of 23.03% over the previous month, beating the performance of the Medical sector with its loss of 5.66%, and the S&P 500's loss of 1.76%.

Investors will be eagerly watching for the performance of Teladoc in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of -$0.3, marking a 57.89% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $612.3 million, down 2.71% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of -$0.86 per share and a revenue of $2.51 billion, demonstrating changes of +24.56% and -0.81%, respectively, from the preceding year.

Any recent changes to analyst estimates for Teladoc should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.93% higher. Teladoc presently features a Zacks Rank of #3 (Hold).

The Medical Services industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 86, placing it within the top 36% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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Teladoc Health, Inc. (TDOC): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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