This Expensive Growth Stock Hasn’t Peaked Yet

The coronavirus pandemic has accelerated the adoption of telehealth services, and few companies are profiting from the trend more than Teladoc Health (NYSE: TDOC). Year-to-date, its stock is up 124%. The medical care platform provider could be overvalued; the company is not profitable yet, and is currently trading at 19.3 times sales and 15.5 times projected sales.

However, there is a strong argument that investors should look beyond those metrics. The telehealth industry has grown by 80% since last year, spurred on by the spread of the coronavirus, but could become more of a norm rather than a temporary trend. If Teladoc can continue to grow its business at its recent rates, its current share price will look like a bargain in five years. With that in mind, let's consider two reasons this stock could be a great addition to your portfolio.