Best Stocks for 2019: Teladoc Stock Is Getting Healthier

Teladoc's fundamentals continue to improve

Editor’s note: This column is part of our Best Stocks for 2019 contest. Jason Moser’s pick for the contest is Teladoc Health (NASDAQ:TDOC).

Best Stocks for 2019: Teladoc Keeps Hearts Racing (TDOC)If you’re an investor in Teladoc Health (NYSE:TDOC), you should be very happy with the way the business is progressing. The company closed out 2018 with another strong quarter and year by virtually every metric.

In fact the performance exceeded guidance by just a tiny bit, but the market didn’t seem quite sure how to react to revenue guidance for 2019 being just a hair light. For the quarter, total revenue was up 59% to $122.7 million in the quarter, with organic revenue up 33%

TDOC Stock By the Numbers

For the full year 2019, management laid out initial guidance with total revenue between $535 million and $545 million; an EBITDA loss between $40 million and $50 million; adjusted EBITDA between positive $25 million and $35 million; total U.S. paid membership of approximately 27 million to 29 million members; and visit-fee-only access to be available to approximately 9.8 million individuals.

They also expect the business to be cash flow positive in 2019 which is another step in the right direction.

It’s also important to note that Medicare Advantage 2020 is going to open virtual healthcare providers up to another 20 million or so lives on which they can bid, so this will be another opportunity for Teladoc to grow its user base. They are also building out access to Canada for a seamless cross-border platform unlike anything that exists today.

All in all it was  a strong finish to the year and a good start to 2019.

Virtual healthcare and telemedicine are happening; it’s no longer a matter of if but when, and Teladoc has done a lot to grow and diversify the business in a relatively short amount of time. One could also say that this business played an integral role in actually helping shape the legislation that is allowing virtual healthcare to become a part of the global healthcare landscape.

Based on what we know today, the risk/reward scenario for TDOC stock seems like a very attractive one for investors who can stay patient and stomach a little volatility along the way. That’s why it has had a strong first quarter so far and why it could very well be the best stocks for 2019.

As of this writing, Jason Moser, a senior analyst with The Motley Fool, held shares of TDOC.


Article printed from InvestorPlace Media, https://investorplace.com/2019/03/best-stocks-for-2019-teladoc-stock-is-getting-healthier/.

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