Teladoc Health trending lower and the fundamentals are poor
Teladoc Health (NYSE: TDOC) is somewhat of a hybrid company, caught between technology and healthcare. The company is considered a software company, but it provides on-demand healthcare services—an interesting mix of attributes. Regardless of what the company does, the stock has been in a downward trend for the last seven months.
The decline started last October and it saw the stock drop from over $85 a share to $42.50 in December. The stock rallied back in January and February, but then turned lower again in March. If we connect the high closing prices from September and February we get a downward sloped trend line and the stock has rallied up to that line in recent weeks.
In addition to the trend line, we see that the stock is struggling to move back above its 50-day moving average. It moved above it on May 1, but it couldn’t maintain the momentum in to the close. We also see that the daily stochastic readings are in overbought territory and made a bearish crossover on May 1.
Teladoc’s fundamentals are below average, at least in terms of its earnings growth and management efficiency measurements. The company saw earnings decline by 10% in its fourth quarter report and earnings have been flat over the last three years. The company is set to report again on May 6.
Because the company has been losing money, the return on equity is currently -12.35% and the profit margin is -23.2%.
The Tickeron AI Prediction tool generated a bearish signal on Teladoc on April 30 and that signal calls for a decline of at least 4% over the next month. The signal showed a confidence level of 66% while previous predictions for the stock have been successful 64% of the time.
TDOC in upward trend: price may ascend as a result of having broken its lower Bollinger Band on April 21, 2025
TDOC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 40 cases where TDOC's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where TDOC's RSI Indicator exited the oversold zone, of 38 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for TDOC just turned positive on April 22, 2025. Looking at past instances where TDOC's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TDOC advanced for three days, in of 275 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 59 cases where TDOC's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on May 06, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on TDOC as a result. In of 92 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The 50-day moving average for TDOC moved below the 200-day moving average on April 23, 2025. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TDOC declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for TDOC entered a downward trend on April 30, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.066) is normal, around the industry mean (30.917). P/E Ratio (0.000) is within average values for comparable stocks, (160.020). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.714). Dividend Yield (0.000) settles around the average of (0.029) among similar stocks. P/S Ratio (0.939) is also within normal values, averaging (59.831).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. TDOC’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. TDOC’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock worse than average.
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a telephone and online video consultation service
Industry PackagedSoftware