Is Teladoc Stock a Buy?
Teladoc Health (NYSE: TDOC) has been one of the big winners of the recent market crash. The company's stock is up by 97% year to date, while the S&P 500 is down by 10% over the same period. However, Teladoc sports rich valuation metrics: The company is currently trading at 17.1 times future sales. And given that Teladoc is not consistently profitable yet, some might think that it isn't worth buying. But I believe Teladoc will continue to handily outpace the broader market moving forward, which makes it more than worth a look. Here's why Teladoc is a strong buy.
In March, Teladoc reported that it was experiencing "unprecedented daily visit volume" because of the ongoing COVID-19 pandemic. This development was hardly surprising. Despite strict social distancing measures the government was forced to impose to mitigate the spread of the disease, patients are still in need of medical attention. Telehealth services providers such as Teladoc allow patients to receive some medical care from their homes.
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Source Fool.com
