What happened
Shares of Teladoc Health (TDOC 2.86%) were rising 5.6% higher as of 11:24 a.m. EDT on Friday. The virtual-care company didn't report any news. Instead, Teladoc's gain appears to be a result of improving investor sentiment for growth stocks, in general.
So what
Today's bounce might seem insignificant in view of the fact that Teladoc's shares are still more than 50% off the high set earlier this year. However, the upward move for the healthcare stock could prompt investors to reexamine Teladoc's growth prospects, which continue to look good.
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Teladoc anticipates that its revenue growth rate will slow in 2021. That's to be expected, though, after the surge in telehealth visits last year that was fueled by the COVID-19 pandemic.
Teladoc still has major opportunities to pick up additional members at existing clients. It also has a lot of potential to cross-sell its products, especially now that it has Livongo's digital-health platform for chronic-disease management.
Now what
It remains to be seen if today's move will be the beginning of a big rebound for Teladoc. But the strength of the company's underlying business and the size of its total addressable market appear to be worthy of investors' attention.
