Teladoc Inc.’s TDOC existing client UnitedAg has expanded its partnership with the former. Per the pact, UnitedAg will now be able to offer its 35,000 members an array of telehealth services relating to behavioral health, dermatology and smoking cessation.
Teladoc has been able to secure this service extension with UnitedAg given its high quality and board range of services. It commands a leadership position (with 75% market share) in the rapidly evolving telehealth industry and has been consistently adding clients to its rooster (currently has more than 7500 clients). This has also led to an increase in revenue which has grown at a CAGR of 80% from 2013–2016.
The story of the company’s consistent growth and expanding business is also shared by its share price performance. In 2016, the company lost 8.13%, but was better off than the Zacks categorized Medical Services industry’s loss of 13.3%. The share price decline was due to investors' weariness over net losses registered by the company over the past many quarters. Yet the stock performed better than the sector, which gives hints of optimism over its ability to turn to profits very soon.
Although so far this year, the stock has gained 8.48% a little below the gain of 9.68% logged by the Zacks categorized Medical Services industry, we believe the company’s consistent performance will drive up its returns going forward.
UnitedAg, a member-owned agricultural trade association serving more than 600 agricultural member groups and over 35,000 covered lives, has chosen to expand its relationship with Teladoc given the wide acceptance of services by its members as reflected by their repeat telehealth visits. Moreover Teladoc’s cost-effective, high-quality care makes its service attractive to users.
Telehealth service is also appropriate for UnitedAg members, who avoid seeking help given the distance many farms have from mental health care centers and professionals. Also, agricultural workers have a higher tendency of behavioral health issues. In such a situation, telehealth is the preferred option for medical treatment.
Teladoc carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the space are Cancer Genetics, Inc. CGIX, INC Research Holdings, Inc. INCR and PRA Health Sciences, Inc. PRAH. While Cancer Genetics sports a Zacks Rank #1 (Strong Buy), the other two stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cancer Genetics beat expectations in three out of the last four quarters, with an average positive surprise of 9.5%.
INC Research Holdings beat expectations in three out of the last four quarters, with an average positive surprise of 8.21%.
PRA Health beat expectations in three out of the last four quarters, with an average positive surprise of 7.48%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Zacks Investment Research