Please ensure Javascript is enabled for purposes of website accessibility

Why Teladoc Health Stock Is Rising Today

By Keith Speights - May 14, 2021 at 11:36AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

There's no big news for the company, but investors appear to be more bullish about growth stocks.

What happened

Shares of Teladoc Health (TDOC -0.02%) 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.

Man holding a smartphone showing a smiling doctor

Image source: Getty Images.

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.

Keith Speights owns shares of Teladoc Health. The Motley Fool owns shares of and recommends Teladoc Health. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Teladoc Health, Inc. Stock Quote
Teladoc Health, Inc.
$40.31 (-0.02%) $0.01

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/15/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.