Why buy Teladoc shares in October?

February 1, 2023

October is coming soon. If you are looking for new investment opportunities or alternative stocks to invest in, then Teladoc may be your answer. The company's stock price has been rising steadily, and there is still room for growth in October because 31 analysts recommended buying this month. In this article, we will discuss what makes Teladoc such an excellent investment opportunity and why it is time to buy now!

Teladoc's position in the stock market

The healthcare industry is changing, and Teladoc has positioned itself as part of this change. Although its stock price may not yet be reflected, TDOC offers investors a compelling value proposition: The company is a leader in telemedicine and is taking advantage of one of the most exciting trends in today's healthcare sector.

With only two major competitors, Teladoc can easily double or triple its revenue in the next few years with only a strong long-term tailwind. Here are some reasons why you should invest in Teladoc Stock.

Leadership positions

The telemedicine market is expanding from early adopters to a wider audience, and Teladoc has the best product on the market: Total Care. Teladoc works with more than 2,200 hospitals and health systems-most of them have joined in the past two years.

With its extensive partnership between the hospital system and the payer, if Teladoc can continue to increase total revenue while penetrating existing customers, there is no reason for its revenue not to double or triple in the next three years (also There are more benefits). Given the company's current revenue run rate (approximately US$2.025 billion), this is equivalent to a revenue growth of more than 109%.

Unique product supply

The main difference between Teladoc and its two main competitors-American Well and Doctor on Demand is to provide a cheaper price per visit, a wider service suite, and stronger EHR integration.

Teladoc charges the doctor an initial virtual visit fee of $40, which allows her to view the patient's medical records and use the doctor's PC or mobile phone to chat with the patient. American Well charges doctors about $60 on average, while Doctor on Demand charges about $50 per visit.

Teladoc also offers a wider range of services, including virtual visits with experts, basic laboratory tests through Quest Diagnostics, remote rehabilitation for stroke or spinal cord injury patients, remote psychiatry for mental health patients, and more.

These unique product offerings increase Teladoc's customer base, thereby increasing the company's overall revenue.

Opportunities for organic growth

Teladoc is in an enviable position as a leader in the industry, which is expected to grow from US$600 million in 2014 to more than US$22 billion in 2022. As with most industries where companies are racing to build market share, you can expect some integration paths.

If Teladoc acquires its smaller competitor while maintaining its significant competitive advantage—that is, a strong network of partners and access to top-notch doctors who actually use Total Care—then Teladoc has no reason not to get three-quarters of the virtual Visit the market within five years.

Other reasons to invest in Teladoc stock

1. The company's stock has performed well and has increased in value over the past few years.

2. The stock is currently priced at a reasonable price (priced at $141.98), which means you don't need to gather all your funds in one place to invest.

3. If you buy stocks now, when the market rises again, their value will be higher

4. You should buy Teladoc stock because it is a worthwhile investment opportunity for those who want to make money by investing while still being able to use it for other things like savings and expenses

5. Investing in Teladoc will help diversify your portfolio, which will provide balance and stability throughout the ups and downs of the market cycle.

in conclusion

The company has begun to demonstrate its ability to grow through acquisitions by acquiring smaller companies. Combined with its strong revenue growth, if the right parts are put in place, this may cause the stock price to skyrocket. If you are considering one of the best long-term growth in 2021, you should consider buying Teladoc stock.