Why Teladoc Health (TDOC) Soared Last Week?

We recently published a list of 10 Firms That Soared Last Week. In this article, we are going to take a look at where Teladoc Health, Inc. (NYSE:TDOC) stands against other firms that soared last week.

Last week saw volatile trading in the stock market as investors scrambled to react from a series of positive and negative catalysts which sparked buying and selling positions across the board.

On Friday alone, Wall Street’s major indices fell into the red territory over renewed fears of growing trade tensions from some of the world’s largest economies, coupled with expectations of a higher inflation rate.

However, 10 firms defied a broader market slump, posting impressive gains in just a week’s trading.

To come up with last week’s biggest advancers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A doctor wearing a face mask and lab coat providing remote medical advice via video chat.

Teladoc Health, Inc. (NYSE:TDOC)

Shares of Teladoc Health, Inc. (NYSE:TDOC) jumped 27.46 percent week-on-week to end at $12.95 apiece on Friday as investor sentiment was boosted by an analyst’s bullish outlook for the company following its acquisition of Catapult Health.

In a recent report, Citron Research underscored TDOC’s potential following its buyout of Catapult Health for $65 million and its effective use of technology to enhance profitability and expand margins.

Teladoc Health (NYSE:TDOC) acquired Catapult Health last week, in line with its efforts to improve early detection of health conditions, expand into at-home diagnostic testing, and deliver better health outcomes in care management that would complement its industry-leading suite of integrated solutions.

Subject to customary closing conditions, the transaction is expected to be completed in the first quarter of 2025.

Overall, TDOC ranks 7th on our list of firms that soared last week. While we acknowledge the potential of TDOC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as TDOC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

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