Teladoc Health (TDOC 2.93%) has given investors a roller-coaster ride over the past few years. During the early days of the pandemic, revenue -- and the share price -- soared as people flocked to virtual medical visits. But slower growth and goodwill impairment charges linked to an acquisition weighed on the company last year, and the stock fell more than 70%.

These days, though, things are starting to look brighter for the telemedicine leader. The company launched a plan earlier this year to cut costs and boost efficiency, and it's starting to bear fruit.

At the same time, more and more clients are opting for Teladoc's whole-person care, Chief Executive Officer Jason Gorevic said this week. Is it time to buy the stock?

Teladoc's pandemic situation

First, a bit of background. Teladoc delivered triple-digit gains in revenue and visits during the first stages of the coronavirus health crisis. This then shifted into double-digit increases, still a solid pace of growth.

The problem was that Teladoc's path to profitability remained unclear. And last year, billions of dollars in non-cash goodwill impairment charges linked to the acquisition of chronic-care company Livongo made the situation worse.

Then, earlier this year, Teladoc made a clear move to turn things around. The company decided to cut costs, increase efficiency, and better balance revenue growth with actions to reach profitability.

The efforts are working. In the second quarter, Teladoc's results either reached or beat all of the company's forecasts -- and Teladoc raised the low end of its full-year revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance.

Teladoc now predicts full-year revenue in the range of $2.6 billion to $2.675 billion and consolidated adjusted EBITDA of $300 million to $325 million. This represents increases of $25 million and $15 million, respectively, to the low end of those forecasts.

But the gains and brighter outlook aren't being driven just by lower costs. They're also being driven by Teladoc's growing strength in the market.

"We are seeing more clients go, what I would call all-in with Teladoc, where they buy our entire suite of services," CEO Gorevic said during the earnings call.

Growth through multiproduct sales

More than three-quarters of Teladoc's sales these days are multiproduct. This means they involve various offerings -- for example, chronic-care solutions and mental health. So most clients aren't just coming to Teladoc for one service -- and this is a key to its growth. Teladoc's recent market survey showed that more than half of employers plan on shifting to "whole person" virtual care within the coming three years.

Right now, Teladoc has nearly 86 million members. Gorevic considers the company's biggest opportunity is the ability to serve these existing members with additional products.

And speaking of the importance of multiproduct sales, Teladoc's chronic-care program drove revenue gains in the second quarter. Integrated care -- or the plans sold to companies and organizations, and this includes chronic care -- posted a 5% increase in revenue to more than $360 million.

In chronic care, more than 1 out of every 3 members has signed up for more than one program. In the past, Teladoc has said enrollment in multiple chronic-care programs has even been linked to member retention. And it's proved it can power growth. As mentioned above, Teladoc lifted annual guidance, thanks to chronic-care's performance so far this year. 

Time to buy?

Let's get back to our question: Is it time to buy Teladoc shares?

Teladoc has climbed 22% so far this year. And that's lifted its price-to-sales ratio from its lowest level ever. But trading at 1.8x sales, the stock still remains cheap, especially compared to past levels.

TDOC PS Ratio Chart

TDOC PS Ratio data by YCharts.

Meanwhile, Teladoc's efforts along the path to profitability are showing results. And the company maintains a leadership position in a high-growth market.

Telemedicine is expected to expand in the double-digits throughout the decade. At the same time, Teladoc is reporting gains in free cash flow and has shown improvement in return on invested capital this year.

TDOC Free Cash Flow Chart

TDOC Free Cash Flow data by YCharts.

Teladoc may not be the right investment for the most cautious investors. But if you can handle a bit of risk and want to bet on a promising recovery and growth story, Teladoc shares make a great buy today.