Shares of SmileDirectClub (NASDAQ:SDC) were jumping 10.4% higher as of 3:05 p.m. EDT on Tuesday. The nice gain came after two developments for the oral care company. SmileDirectClub announced on Monday that it was launching new SmileShop stores in London and Leeds, England. On Tuesday, SmileDirectClub and Meredith Corporation's (NYSE:MDP) Foundry 360 content market studio announced the launch of Telehealth Explained, a new platform for educating consumers about the benefits of telehealth.
There are two things that make SmileDirectClub's gains today especially notable. First, the healthcare stock rose on a day when the overall stock market performed dismally. Second, the trading volume for SmileDirectClub's shares was over 50% higher than the average trading volume.
It seems safe to say that neither of SmileDirectClub's announcements was transformational enough on its own to be a major catalyst for the stock. However, the combination of these two encouraging developments, along with recent buying by key company insiders, underscores a general sentiment among investors that SmileDirectClub could be in store for stronger growth in the future.
SmileDirectClub's launches of SmileShop stores in the United Kingdom should boost the company's international sales. The company's Telehealth Explained initiative holds the potential to increase U.S. consumers' awareness of its online dentistry offerings.
The key for SmileDirectClub to keep its momentum going is to report strong third-quarter results. Investors will have to wait a couple of months, though, for the company's Q3 update.