Wouldnt it be good to be able to talk to a doctor and get a prescription over the internet for non serious conditions. Thats exactly what Teladoc (TDOC) offers and the idea is catching on fast. Membership has tripled and visits have increased 600% to 1 million over the past few years and strong growth is expected to continue.
The stock price has recently risen again to over $30 and, currently, at $32.80 has a market cap of $1.8 billion. But with Teladoc controlling a market share of 75% in a total addressable market estimated at $29 billion, a much higher valuation looks achievable.
It is evident that there is a strong need for this service. There is a national shortage of general practitioners with 65 million Americans, especially in rural areas, lacking adequate coverage. It is estimated that a dozen states have less than 50% of the number of required GPs. Add in an ageing society, growing demand for tobacco cessation and increasing demand for sexual health checks.
Teladoc is increasingly being offered in medical plans and has seen utilization rates increasing strongly. The recent accquisition of analytics firm Best Doctors boosts this further and should prove appealling to healthcare with their focus on patient outcomes.
With both convenience and nescessity offering a long run way of growth the company's future looks bright.
This is not a recommendation to buy or sell. Stocks are not suitable for all investors. Please do your own research.
Submitted August 01, 2017 at 01:32AM by InterestingNews1 http://ift.tt/2vdt6Ul
