TDOC - Is Popular Healthcare Stock Teladoc a Buy in 2020?
It's been a record year in the world of telemedicine -- and no company dominates the U.S. corner of this market more than Teladoc (NYSE: TDOC). The company is the oldest telehealth provider in the country. With the demand for telehealth services higher than ever because of the coronavirus pandemic, it's no surprise that Teladoc's star power has exploded since the beginning of the year.
In the second quarter -- which ended June 30 and encompassed the peak of the pandemic -- management said that patient visits were up 203% compared to the second quarter of last year. In an April survey, global management consultants McKinsey & Company found that 46% of consumers turned to telehealth consultations when an in-person visit with their medical provider was canceled, a 35% uptick from last year.
Investors watching Teladoc's rapid growth (the stock is up 151% from its Jan. 2 closing price) might be worried that demand will peak and the stock will fizzle out. But Wall Street analysts don't seem concerned. In fact, they project that Teladoc will achieve 20% earnings growth every year for the next five years.