Is Teladoc Health (TDOC) Stock a Buy For 2021?

Alex Smith
·3 min read

Brown Capital Management Mid Company Fund recently released its Q4 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 16.55% (inst. class) for the quarter, underperforming its benchmark, the Russell Midcap Growth Index which returned 19.02% in the same quarter. You should check out Brown Capital Management's top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.

In the Q4 2020 Investor Letter, the fund highlighted a few stocks and Teladoc Health Inc. (NYSE:TDOC) is one of them. Teladoc Health Inc. (NYSE:TDOC) is a healthcare company. In the last three months, Teladoc Health Inc. (NYSE:TDOC) stock gained 7.6% and on March 2nd it had a closing price of $217.92. Here is what the fund said:

"Teledoc Health operates a telehealth platform that provides on-demand healthcare services to its members in the U.S. and abroad. Its solution connects consumers with physicians and behavioral health professionals who treat a range of conditions. The company offers its services through mobile devices, the internet, and by video or phone. The shares faced some pressure, given zero sequential quarterly membership growth in the third quarter, a quarterly decline in core visits, and an off-target guidance raise from management. The integration of Teledoc and Livongo, a company it recently acquired, will be critical going forward, especially since it seems unlikely we will get any firm guidance from Medicare and Medicaid around reimbursement rates in the near term, which is a critical driver for long-term telehealth wallet share. We still believe in the fundamentals of the business, but we are monitoring increasing competition from traditional providers."

Last month, we published an article revealing that Saga Partners is bullish on Teladoc Health Inc. (NYSE:TDOC) stock.

In Q3 2020, the number of bullish hedge fund positions on Teladoc Health Inc. (NYSE:TDOC) stock increased by about 7% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Teladoc's growth potential. Our calculations showed that Teladoc Health Inc. (NYSE:TDOC) isn't ranked among the 30 most popular stocks among hedge funds.

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Disclosure: None. This article is originally published at Insider Monkey.