Teladoc's Recovery Story Is Starting to Take Shape. Should You Buy the Stock?
It could be an attractive contrarian play, but beware of the risks.
Overview
After years of lagging broader equities, Teladoc Health (NYSE: TDOC) is finally bouncing back. The company's shares are up by 28% to date, while the S&P 500 has climbed just 9%. The telemedicine specialist still has plenty of work to do, but could it finally be on the road to full recovery? Let's see whether Teladoc can maintain the momentum it has had this year.
At first glance, Teladoc doesn't seem to be doing that much better. In the first quarter, the company's revenue declined 2% year over year to $613.8 million. Sales from its BetterHelp virtual therapy division fell 9% year over year to $218.4 million, while the number of paying users on BetterHelp also fell 9%. Further, Teladoc remains unprofitable. It posted a net loss per share of $0.36, which, in fairness, was much better than the $0.53 loss per share it recorded in the year-ago period.
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Originally published at www.fool.com.