Patients and investors flocked to Teladoc Health (TDOC 3.38%) during the early days of the pandemic. Patients did it to avoid contact with others. Investors did it to benefit from the company's incredible growth. Revenue and virtual visits were soaring in the triple digits. And the stock climbed more than 240% from the start of 2020 through early last year.

Since then, the story has changed. Revenue and visits continue to rise -- in the double digits. That's still impressive growth. But investors have started to worry about competition, the company's ability to eventually generate a profit, and a recent goodwill impairment charge. As a result, the stock has tumbled 59% so far this year. After this fall from grace, is Teladoc finally a buy?

A look at the problems

First, let's take a closer look at the problems. Teladoc is a leading provider of online medical visits. But it does face competition. In fact, the company said smaller rivals did two things to upset its first quarter.

Rivals bid up online advertising spots. And they gained users by providing prescriptions for controlled substances. This is something authorities have temporarily allowed during the pandemic. Usually, patients must see a doctor in person first. But Teladoc refuses to issue such prescriptions.

Here, I agree with Teladoc. These players can't generate lasting market share through such practices. Teladoc still has the advantage of being a global player with a complete offering -- from mental health to physical health. And it even has a growing chronic care business.

As for earnings, I'm not shocked that Teladoc isn't yet profitable. It's still investing quite a bit in growth. So, eventually, if the company can continue increasing revenue and visits, the potential to reach profitability exists. Teladoc aims to grow revenue by increasing the number of members and the revenue per member. And it's shown it can do this. In the first quarter, U.S. member numbers rose by more than 5%, and revenue per member rose by more than 20%.

Now, let's look at the $6.6 billion noncash goodwill impairment charge. It indicates Teladoc paid too much when it acquired Livongo in 2020. That's not great news. But it's important to put this news into perspective. This is a one-time charge. I wouldn't expect another huge one stemming from the Livongo operation.

The potential of Livongo

Livongo may also bring Teladoc significant revenue over time. The company is still integrating Livongo products into its business. So the story isn't over. And chronic care is a key area. In the U.S. alone, about half of the population have at least one chronic health condition.

OK, so we've talked about the challenges -- and why they don't equal catastrophe for this growing company. Let's move on to the revenue picture. Teladoc isn't a pandemic-only stock. The company's revenue was already on the rise before the health crisis. And these days this continues -- even though medical offices have reopened and people aren't isolating.

In the first quarter, U.S. revenue and international revenue increased 24% and 27%, respectively. And total visits climbed 35%. Chronic care members also rose about 12% year over year. This is important because these members usually sign up for multiple programs. So, Teladoc's business clearly is growing.

At the same time, as mentioned above, the share price has suffered. And that's left the stock trading at a steal considering future growth prospects. Teladoc trades for about 2.7 times sales. That's down from more than seven at the start of the year.

Is Teladoc a buy after its fall from grace?

To buy or not to buy? It depends on your investment style. If you're a cautious investor, it's probably best to wait and see how Teladoc progresses toward profitability. The stock could bring us more downs than ups if elements in the next earnings report disappoint.

But if you can handle some risk, right now is a great time to add Teladoc to your portfolio. The company has hit a rough patch -- and that's resulted in a bargain basement price for the stock. But revenue and membership growth are clues that better days may be down the road for Teladoc -- and its investors.