Teladoc Health, Inc.
TDOC
recently announced that it has widened the capabilities of its Primary360 service. The move is expected to stimulate the momentum that TDOC achieved with Primary360. Per management, non-profit health insurer Priority Health (which has one million members in Michigan) adopted Primary360 for its members.
Last October, TDOC launched its primary care model Primary360 and extended its availability to commercial health plans, employers and other organizations committed to offer health care across the United States. Teladoc is further adding to the offerings with new services to extend care coordination and develop in-home options.
The service is now expected to provide health plan in-network referrals to its members and care coordination support. Primary360 members can also take advantage of a same-day medication delivery through the online pharmacy service called Capsule. This move is expected to improve the rate of failure in picking up prescriptions. This move is expected to improve the rate of failure in procuring medicines per prescription.
Further, Teladoc is expected to provide in-home and on-demand phlebotomy services for its Primary360 members with Scarlet Health’s support. TDOC expects the move to reduce transportation challenges and improve lab order completion rates. In an initial trial, backed by Scarlet Health, the completion rate improved 22.5%.
Given the momentum witnessed in the short span of the Primary360 service, more products and solutions are expected to be added by Teladoc in the coming days. TDOC has witnessed massive declines in share prices in the past few months despite taking multiple positive steps. Investors are cautiously waiting at the sidelines, assessing the risks and perks of TDOC’s operations. If the company keeps expanding its service suite and manages to deliver on its promise, the share price might rise again.
Price Performance
Shares of Teladoc have decreased 75.5% in the past year compared with the 45.5% decline of the
industry
.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Teladoc currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader
medical
space are
Assertio Holdings, Inc.
ASRT
,
Acadia Healthcare Company, Inc.
ACHC
and
Altimmune, Inc.
ALT
. While Assertio sports a Zacks Rank #1 (Strong Buy), Acadia Healthcare and Altimmune carry a Zacks Rank #2 (Buy) at present. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
The Zacks Consensus Estimate for Assertio’s second-quarter earnings indicates a 125% improvement from the year-ago quarter’s reported figure. ASRT’s earnings beat estimates twice in the last four quarters and missed the same on the other two occasions, the average surprise being 26.4%.
The Zacks Consensus Estimate for Acadia Healthcare’s 2022 bottom line indicates a 19.1% improvement from the 2021 level. ACHC has witnessed one upward estimate revision in the past 30 days against none in the opposite direction. ACHC’s earnings beat estimates twice in the last four quarters, met the same once and missed the mark on another occasion, the average surprise being 4.4%.
The Zacks Consensus Estimate for Altimmune’s 2022 bottom line indicates an 8.2% improvement from the 2021 level. ALT has witnessed four upward estimate revisions in the past 60 days against none in the opposite direction. ALT’s earnings beat estimates in three of the last four quarters and missed the mark on the remaining occasion.
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