Medicare is making a big change that will kick in at the end of the month. Through Jan. 30, Medicare will cover telehealth services, delivered to you wherever you are, including in your home. But as of the next day, coverage will end -- unless you live in a rural area and go to a medical facility for the appointment. There are a few other exceptions, but overall, Medicare is no longer broadly covering telehealth services as it did in the past. Considering this shift, will Teladoc Health (NYSE: TDOC) stoc ...

Key Points Medicare will no longer cover telemedicine services for many patients. This change will affect Teladoc Health, which was already struggling. Doximity might be less affected, but its prospects look dim as well. 10 stocks we like better than Teladoc Health › Telehealth services are convenient. There is nothing quite like being able to get some medical care, albeit virtual, from the comfort of one's home. Telehealth likely saves physicians and patients time and money. However, none of t ...

Industry Overview - The Zacks Medical-Hospital industry includes for-profit hospital companies providing various healthcare services through different types of hospitals, such as acute care, rehabilitation, and psychiatric [2] - Revenue generation is influenced by inpatient occupancy levels, medical services ordered by physicians, and outpatient procedure volumes [2] Key Trends - Demand for healthcare is growing due to an aging population and increasing national health spending, projected to rise from 17.6% of GDP in 2023 to 20.3% in 2033 [3] - There is a significant shift from inpatient to outpatient and home-based care, which is improving access but also creating excess inpatient capacity and fixed-cost burdens for hospitals [3] Cost Containment - Hospitals are facing margin pressures from rising labor and supply costs, while reimbursement rates are lagging behind cost growth [4] - To maintain profitability, hospitals are adopting automation, redesigning staffing models, and renegotiating vendor contracts [4] Digital Transformation - The adoption of AI, automation, and data-driven tools is accelerating in hospitals to enhance efficiency and patient outcomes [5] - Telehealth has become a permanent service, expanding access to care for underserved populations [5] Consolidation Trends - Mergers, acquisitions, and strategic partnerships are increasingly common as hospitals seek to improve scale and efficiency in a fragmented market [6] - Financially stronger operators are acquiring smaller, stressed facilities, while partnerships focus on technology and alternative care delivery [6] Industry Performance - The Zacks Medical-Hospital industry has gained 19.3% over the past year, underperforming the S&P 500's 19.5% but outperforming the broader Medical sector's 5.5% [11] - The industry's Zacks Rank is 199, placing it in the bottom 18% of over 240 Zacks industries, indicating challenging near-term prospects [7][9] Current Valuation - The industry trades at a trailing 12-month EV/EBITDA ratio of 8.73X, compared to the S&P 500's 18.90X and the sector's 10.32X [14] Company Highlights - **Universal Health Services**: Focuses on acute care hospitals and outpatient centers, with a strong history of share buybacks and projected earnings growth of 31.4% for 2025 [17][18] - **Tenet Healthcare**: Invests in ambulatory care and has seen a 55.1% share price increase over the past year, with earnings estimates showing a 35.9% growth for 2025 [21][22] - **Community Health Systems**: Operates acute care hospitals and outpatient centers, with a projected earnings improvement of 184.5% for 2025, despite a forecasted loss for 2026 [25][26]

Company Performance - Teladoc (TDOC) closed at $7.57, reflecting a -5.38% change from the previous day, underperforming the S&P 500 which lost 0.34% [1] - Over the past month, Teladoc shares have increased by 3.9%, while the Medical sector and S&P 500 gained 0.82% and 1.19% respectively [1] Earnings Forecast - The upcoming earnings report for Teladoc is expected to show an EPS of -$0.19, which is a 32.14% improvement from the same quarter last year [2] - Revenue is forecasted at $634.53 million, indicating a 0.93% decline compared to the same quarter last year [2] Full Year Projections - For the full year, earnings are projected at -$1.19 per share and revenue at $2.52 billion, representing a 79.73% increase in earnings and no change in revenue from the previous year [3] - Recent analyst estimate revisions suggest optimism regarding Teladoc's business and profitability [3] Zacks Rank and Industry Position - Teladoc currently holds a Zacks Rank of 4 (Sell), with the Medical Services industry ranked 184, placing it in the bottom 25% of over 250 industries [5] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown that top-rated industries outperform the bottom half by a factor of 2 to 1 [6]

Core Insights - Pediatrix Medical Group, Inc. (MD) is positioned for growth due to increased collection activity, improved patient acuity, higher contract administrative fees, a favorable payor mix, and strategic acquisitions [1][10] - MD's shares have increased by 55.2% over the past six months, significantly outperforming the industry average of 6.7% [1][10] Company Overview - Pediatrix Medical has a market capitalization of $1.8 billion and offers various physician services in newborn, maternal-fetal, radiology, pediatric cardiology, and other pediatric subspecialties [2] - The company's forward P/E ratio is 10.35X, which is lower than the industry average of 17.93X, and it holds a Value Score of B [2] Earnings Estimates - The Zacks Consensus Estimate for MD's 2025 earnings is $2.07 per share, reflecting a year-over-year increase of 37.1% [3] - The revenue consensus for 2025 is projected at $1.9 billion, with MD having beaten earnings estimates in the past four quarters by an average surprise of 35.4% [3] Growth Drivers - MD is experiencing growth in same-unit revenues and pricing, supported by an improved payer mix, solid revenue cycle management (RCM) cash collections, increased patient acuity, and higher administrative fees from hospital contracts [4] - In Q3 2025, same-unit revenues from net reimbursement-related factors rose by 7.6% year-over-year [5] Financial Performance - MD has raised its adjusted EBITDA guidance for 2025 to a range of $270-$290 million, up from the previous range of $245 million to $255 million [5] - Total operating expenses decreased by 11% year-over-year in Q3 2025, with projections suggesting a nearly 19.5% decline in 2025 due to lower practice salaries and benefits [5] Strategic Initiatives - The company is expanding its telehealth services to enhance healthcare access and improve patient outcomes [6] - MD is actively pursuing mergers and acquisitions in core service lines, having acquired several practices for $19.2 million in September 2025 [7] Cash Flow and Share Repurchase - Net cash generated from operations in Q3 2025 was $138.1 million, an increase from $95.7 million a year ago [8] - In August 2025, MD authorized a $250 million share repurchase program and repurchased $20.9 million worth of shares in Q3 2025 [8] Debt Situation - As of September 30, 2025, MD had a net debt of $602.5 million, significantly higher than its cash balance of $340.1 million, which may pressure interest expenses [11] - The total debt-to-EBITDA ratio stands at 8.1%, well above the industry average of 2.4%, limiting financial flexibility [11]

Core Viewpoint - NowRx, Inc. is facing a class action lawsuit for alleged violations of the Securities Exchange Act of 1934, with claims that the company misled investors about its financial condition and potential bankruptcy risks during the class period from February 1, 2022, to November 5, 2022 [1][5]. Company Overview - NowRx, Inc. is a private Delaware corporation founded in 2016, based in Mountain View, California, and operates as a tech-powered pharmacy offering same-day prescription delivery and telehealth services [2]. Financial Events - On September 30, 2021, NowRx initiated an offering under SEC Regulation A, proposing to sell up to 7,002,801 shares of Series C Preferred Stock at $10.50 per share [3]. - On November 30, 2022, NowRx announced an agreement to acquire Alto Pharmacy, which would take over prescription delivery and services for NowRx patients, leading to significant losses for Series C stock investors [4]. Allegations in the Lawsuit - The lawsuit alleges that NowRx and its executives failed to disclose critical information regarding the company's financial health, including: - The company was nearing bankruptcy or insolvency [5]. - An investment bank had been hired to explore a sale or raise funds for continued operations [5]. - As of December 31, 2021, NowRx was valued at $3.55 per share, significantly lower than the $10.50 per share offered to investors [5]. Legal Process - Investors who purchased NowRx securities during the class period can seek to be appointed as lead plaintiff in the class action lawsuit, which allows them to represent the interests of all class members [6]. - The deadline for filing lead plaintiff motions is January 23, 2026, as per the Private Securities Litigation Reform Act of 1995 [7].

Core Insights - Teladoc Health, Inc. is currently viewed as a promising digital health stock to consider for investment [1] - The company's Q3 earnings report revealed a decline in revenue primarily due to a reduction in BetterHelp's performance and a strategic pullback on marketing efforts [3] Financial Performance - Q3 revenue decreased as BetterHelp's segment shrank, leading to an 8% decline in the lower-margin segment, which resulted in a 16% drop in adjusted EBITDA to $69.9 million [3] - The GAAP loss widened due to non-cash charges and amortization rather than a significant drop in demand [4] - Integrated Care showed growth, but the profitability mix was unfavorable, with BetterHelp's margin at 1.6% compared to Integrated Care's 17.0% [3][4] Analyst Ratings - Evercore ISI analyst Elizabeth Anderson maintained an In-Line rating for Teladoc Health, adjusting the price target from $8.00 to $9.00 on October 8, then reverting it back to $8.00 on October 30 after the Q3 earnings call [2][4] Market Dynamics - International growth was reported at 12%, which partially offset a 5% decline in the U.S. market [4] - The company's guidance indicates a focus on disciplined growth, with expectations for modest Integrated Care growth and a slow rebuild of BetterHelp as insurance adoption shifts revenue strategies [4]

Core Insights - The telehealth platform experienced a significant revenue increase of 49%, reaching $599 million in the latest quarter [1] Financial Performance - Revenue rose to $599 million, marking a 49% increase compared to the previous quarter [1]

Core Insights - Teladoc (TDOC) shares increased by 10% to close at $9.46, driven by higher trading volume compared to typical sessions, and an overall gain of 8.2% over the past four weeks [1][2] Financial Performance - The company anticipates third-quarter revenue of $626.4 million, exceeding the Zacks Consensus Estimate of $625 million, with adjusted EBITDA projected at $69.9 million [2] - The expected quarterly loss is $0.26 per share, reflecting a year-over-year decline of 36.8%, while revenues are forecasted to be $625.2 million, down 2.4% from the previous year [3] Earnings Estimates - The consensus EPS estimate for the quarter has been revised 0.6% higher in the last 30 days, indicating a positive trend that typically correlates with stock price appreciation [4] - Empirical research suggests that trends in earnings estimate revisions are strongly linked to near-term stock price movements [3] Market Position - Teladoc holds a Zacks Rank of 2 (Buy), indicating a favorable outlook compared to other stocks in the medical services industry [5] - In contrast, Avantor, a peer in the same industry, has a Zacks Rank of 4 (Sell) and has seen a 2.2% decrease in its EPS estimate over the past month [6]

Core Viewpoint - DocGo Inc. has announced the acquisition of virtual care platform SteadyMD, enhancing its technology-enabled mobile health and medical transportation services [1] Group 1: Acquisition Details - The acquisition of SteadyMD is aimed at strengthening DocGo's offerings in telehealth services [1] - Management will discuss the acquisition in a conference call and webcast scheduled for October 21 at 11:00 a.m. ET [1] Group 2: Company Profile - DocGo is recognized as a leading provider in the mobile health and medical transportation sector [1] - SteadyMD provides high-quality telehealth experiences for various stakeholders including digital health companies, labs, pharmacies, and employers [1]