Teladoc (TDOC) Jumps 5.1%: Does This Signal More Upside Ahead?

Teladoc Shares Climb After Analyst Upgrade

Teladoc (TDOC) saw its stock price rise by 5.1% in the most recent trading session, closing at $5.57. This increase was accompanied by unusually high trading volume. Over the past month, the stock has gained 6.4%.

The surge followed Deutsche Bank’s decision to upgrade Teladoc from Hold to Buy, pointing to the company’s attractive valuation and its initiatives to overhaul the BetterHelp division. According to the bank, these factors could pave the way for further gains in the stock.

Upcoming Earnings Expectations

Teladoc is projected to report a quarterly loss of $0.31 per share, which would mark a 63.2% decline compared to the same period last year. Revenue is anticipated to reach $614.34 million, representing a 2.4% decrease year-over-year.

While earnings and revenue forecasts provide insight into a company’s outlook, research indicates that changes in earnings estimates are closely linked to short-term stock price movements.

For Teladoc, analysts have lowered their consensus EPS estimate for the quarter by 18% over the past month. Typically, downward revisions in earnings estimates do not support stock price growth. Investors should monitor TDOC to see if the recent rally can be sustained.

Industry Peers and Analyst Ratings

Currently, Teladoc holds a Zacks Rank #3 (Hold).

Within the Zacks Medical Services sector, Bausch + Lomb (BLCO) finished the last session down 0.6% at $17.12, but has returned 1.8% over the past month.

Bausch + Lomb’s consensus EPS estimate for the upcoming quarter has increased by 43.5% in the past month to $0.07, a 200% improvement from the prior year’s figure. The company also holds a Zacks Rank #3 (Hold).

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