Teladoc Health , Inc. (NYSE:TDOC) is going to release its second-quarter results on July 29, 2020. The stock’s already up 170% year to date and with a strong performance in Q2, reaching a new high for the year isn’t out of the question.
What’s working against the stock right now is that Teladoc shares are trading at more than 26 times sales and 18 times book value. Those are steep valuations for a company that’s continually incurred losses over the years.
But despite the problems on the bottom line, it’s the company’s top line and subscriber growth that make it a hot stock to buy. With year-over-year sales growth of 41% in the first quarter and its subscription access revenue rising 29%, Teladoc’s businesses has been growing at a rapid pace.
And it’s possible that Q2 could be even stronger than Q1 given that lockdowns keeping people at home could accelerate the virtual care provider’s growth. And with people losing their jobs during the COVID-19 pandemic and no longer having healthcare coverage, Teladoc’s services could be an attractive solution for those looking for some sort of coverage.
With Teladoc likely headed for a strong quarter when it posts its earnings this month, the stock definitely looks to be a good buy. Remote care is big business right now and Teladoc is a company that’s in a great position to benefit from that demand. Although it’s an expensive buy, investing in Teladoc could be a calculated risk worth taking given the potential that the stock has over the long term.
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