Why the 24/7 Care upgrade matters for Teladoc Health stock

Teladoc Health (TDOC) has rolled out a nationwide upgrade to its 24/7 Care service, expanding virtual urgent care to more conditions, adding real-time specialist consults, and integrating preventive care and prescription benefit checks.

Even with the 24/7 Care upgrade and a recent appearance at the J.P. Morgan Healthcare Conference, Teladoc Health’s share price has been weak, with a 7 day share price return of 12.62% and a 1 year total shareholder return of 25.32%. This suggests sentiment has cooled rather than built momentum.

If you are looking beyond Teladoc Health for other virtual care and medical names, this could be a good moment to scan healthcare stocks for fresh ideas in the healthcare space.

With Teladoc Health shares down over the past year and the stock trading below some valuation estimates, you have to ask: Is the recent weakness a mispricing you can exploit, or is the market already discounting future growth?

Most Popular Narrative: 23.4% Undervalued

With Teladoc Health closing at US$6.99 versus a narrative fair value of US$9.13, the gap is clear and the assumptions behind it really matter.

Teladoc's continued investment in product innovation, including enhanced cardiometabolic programs and integrated mental health offerings, positions the company to capture growing demand for digital management of chronic diseases and leverage the increasing need for cost-effective care, supporting long-term revenue and enrollment growth.

Want to see what sits under that valuation gap? The narrative leans heavily on steady revenue expansion, margin repair and a future earnings multiple below sector levels. The exact mix of growth and profitability assumptions might surprise you.

Result: Fair Value of $9.13 (UNDERVALUED)

However, this hinges on BetterHelp managing churn and margin pressure, and on chronic care contracts holding up in a crowded market where pricing power is uncertain.

Build Your Own Teladoc Health Narrative

If you would rather stress test the numbers yourself instead of leaning on this view, you can build a custom Teladoc story in a few minutes: Do it your way.

A great starting point for your Teladoc Health research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.