Teladoc's Long-Term Prospects Have Never Looked Better
Down 70% over the past year, Teladoc (NYSE: TDOC) now trades at 3.9 times sales, while Johnson & Johnson (NYSE: JNJ), a much slower-growing company, trades at 4.9 times sales. Investors are not valuing Teladoc as high as it should be based on its fundamental strength in a few key areas.
First, Teladoc has a product consumers love. The company retains almost all of its customers each year and actually generated 52% more revenue per user in 2021.
Teladoc continues to add offerings in fast-growing industries like diabetes monitoring and mental health services. This helps the company expand into a mostly untapped market in which only 25% of Americans used a virtual healthcare service in 2020, the first year of the pandemic.
Source Fool.com
