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Teladoc (TDOC) Soars 10.0%: Is Further Upside Left in the Stock?

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Teladoc (TDOC - Free Report) shares rallied 10% in the last trading session to close at $9.46. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 8.2% gain over the past four weeks.

Investor confidence in Teladoc’s upcoming third-quarter results and 2025 guidance fueled the double-digit surge. The company provided an early look at its estimated third-quarter results, with revenue expected to reach $626.4 million, surpassing the Zacks Consensus Estimate of $625 million and adjusted EBITDA at $69.9 million. Alongside the CFO transition, Teladoc reaffirmed its full-year 2025 revenue and adjusted EBITDA outlook issued on July 29, reinforcing management’s commitment to steady growth.

This telehealth services provider is expected to post quarterly loss of $0.26 per share in its upcoming report, which represents a year-over-year change of -36.8%. Revenues are expected to be $625.2 million, down 2.4% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Teladoc, the consensus EPS estimate for the quarter has been revised 0.6% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on TDOC going forward to see if this recent jump can turn into more strength down the road.

 

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Teladoc is a member of the Zacks Medical Services industry. One other stock in the same industry, Avantor, Inc. (AVTR - Free Report) , finished the last trading session 0.4% lower at $15.4. AVTR has returned 31.2% over the past month.

For Avantor, the consensus EPS estimate for the upcoming report has changed -2.2% over the past month to $0.23. This represents a change of -11.5% from what the company reported a year ago. Avantor currently has a Zacks Rank of #4 (Sell).


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