Teladoc Hits 52-Week High On Strong Results, Client Wins

On Jun 2, shares of Teladoc Inc. (NYSE:TDOC) hit a 52-week high of $33.35. The share price gain is believed to have been driven by the company’s better-than-expected first-quarter earnings along with the recent news of expansion of its telehealth offerings in Texas.

Over the past one year, the stock has rallied 169%, significantly outpacing a gain of mere 1.05% for the Zacks categorized Medical Services industry.

The company impressed its investors with first-quarter results which exceeded its guidance across each of its key metrics. The company recorded total revenue of around $43 million or growth of approximately 60%; adjusted EBITDA loss of $9 million, which narrowed from approximately $12 million in the same period last year; membership of $20.1 million, reflecting growth of 34% over the prior-year period. Also, over $2.6 million lives have been added since year-end 2016.

The company has also been experiencing significant client activity. Its services were implemented at Edison, Marriott Vacations Worldwide and Yale University among others. Also, continued demand for its virtual care delivery solutions have resulted in several newly signed accounts such as Dullards, Bear and Paychex (NASDAQ:PAYX). These clients are all expected to go live later this year. Teladoc also signed agreements with multi-care health system comprising seven hospitals in Washington, WellSpan Health system comprising six hospitals in Central Pennsylvania, and the recently expanded relationship with the Mount Sinai Health system in New York.

Also, the company has recently resolved its issues with the Texas Medical Board with the passage of a new landmark telemedicine bill in Texas. Senate Bill 1107 will soon be signed into law, establishing Texas as a national leader in telemedicine and thus marking the close of Teladoc’s six-year legal dispute in the state over proper scope and use of telemedicine. The company is now trying to expand its services in the region.

Teladoc carries a Zacks Rank #3 (Hold). Other players that hit 52-week highs in the healthcare sector on the same day are Humana Inc. (NYSE:HUM) , Anthem Inc. (NYSE:ANTM) and Cigna Corp. (NYSE:CI) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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