Teladoc Health: The Story Keeps Getting Better

Mar. 16, 2020 3:03 PM ETTeladoc Health, Inc. (TDOC)7 Comments
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WG Investment Research


  • Teladoc Health is garnering a lot of attention lately, but in my opinion, the company has had a strong bull case for years.
  • I believe that this once under-the-radar telemedicine company is worthy of investment dollars (even at today's price) because its story keeps getting better.
  • I am long Teladoc, and I plan to stay long the stock.

Teladoc Health's (NYSE:TDOC) stock has performed extremely well over the past few years, and 2020 may turn out to be the best year yet. To this point, TDOC shares have outperformed the broader market by over 100 percentage points over the last 52 weeks.

ChartData by YCharts

But get this, I believe that Teladoc's stock still has room to run. Not only does this small disruptive company have promising near-term business prospects, but it also has a great long-term story to tell. And it helps that Teladoc's story (i.e., bull case) keeps getting better.

The Long-term Story That Is

As I recently described, Teladoc's story is simple: the company is disrupting an industry that needs to be disrupted. The company's suite of services is really starting to catch on, and the recent acquisitions are already bearing fruit (for example, the Best Doctors and Advance Medical acquisitions should continue to positively impact Teladoc's business prospects, as I recently described here).

In addition, I believe that this type of growth (in members, visits, revenue, adjusted EBITDA and operating cash flow) shows that Teladoc is properly positioned in a market that has a tremendous growth profile. Teladoc is far ahead of its competitors in this growing industry, in my opinion, and I do not see anything slowing this company down in the near future.

Source: Investor Presentation, 3/11/2020

Additionally, I believe that the growth metrics that Teladoc has reported for its top-5 clients shows the value that this telemedicine company has been able to create for its customers.

Source: Investor Presentation, 3/11/2020

And more recently, Teladoc's business (and telemedicine in general) has been getting a lot of attention, and rightfully so, as COVID-19 has caused a national (and global) crisis in a few short weeks. For example, Teladoc saw a nice bump in its stock price after

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Our President and CIO is a CPA with experience in public accounting and the financial services industry. He earned his Master of Accountancy degree in 2008 and his B.S. in Business Management in 2007. He is also a Level III CFA candidate. He has been intrigued by the market from the start. Over the years, he has learned that long-term investing is a discipline that, if followed, will help contribute to building lasting wealth. As such, most of our articles will be about the investments that we plan to hold for at least 3 to 5 years, as long as the company's story does not change. As a Seeking Alpha contributor, our main goal is to write about the companies that are key to our portfolio with the hope of promoting discussion (for or against the investment) from others within the SA community.Please visit our website for more information about W.G. Investment Research LLC.

Disclosure: I am/we are long TDOC. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: This article is not a recommendation to buy or sell any stock mentioned. These are only my personal opinions. Every investor must do his/her own due diligence before making any investment decision.

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