The Teladoc Recovery Has Only Begun

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On April 8, we called Teladoc (TDOC) a buy opportunity.

At the time, the stock traded around $182, becoming severely oversold on RSI, MACD, and Williams’ %R.  Plus, as we noted, it didn’t help that Amazon.com announced its own telehealth plans.  However, the long-term picture here is still bright with a McKinsey & Co. report, noting “estimates that up to $250 billion, or 20% of all Medicare, Medicaid, and commercial outpatient, office, and home health spend could be done virtually.”

But at $182, TDOC was dirt cheap.

Even analysts were buyers on weakness, like Piper Sandler analyst, Sean Wieland who said he’d be a buyer on weakness.

As reported by Barron’s, “Piper Sandler analyst Sean Wieland analyzed downloads of the Livongo mobile-phone app, a health-monitoring service from Livongo, which Teladoc acquired in the fall for $18.5 billion.  Wieland wrote that there were 80,700 downloads of the app in the first quarter of 2021, down 25% compared with the first quarter of 2020.”

Today, shares of TDOC are up to $191.79 and could eventually test $220 again, near-term.  In fact, we’d like to see TDOC push higher ahead of its Q1 2021 results on April 28.

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