Shares of Teladoc Health (NYSE:TDOC) 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.
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.
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.
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.