Viemed Healthcare, Inc. (TSX:VMD)(NASDAQ:VMD) is a stock that’s been red-hot of late. In just the past three months, shares of Viemed have skyrocketed 140%. For investors, this may be an ideal COVID-19 stock to hold in their portfolios. The health-care company is in the business of respiratory products and services and it makes ventilators.
The longer the pandemic goes on for and the more people who contract COVID-19, the more of a demand there will be for Viemed’s products. The ventilators can also be used remotely to work with telehealth services to assist nurses who help look after patients outside of hospitals. That lessens the load on hospitals while keeping people at home and safe.
In its first-quarter results of 2020, which went up until the end of March, Viemed’s net revenue rose by 31% from the prior-year period. This was still during the early stages of the pandemic and it wouldn’t be surprising for Viemed to have an even stronger second quarter when it releases results up until the end of June.
And with a vaccine for the pandemic perhaps a year or more away, the need for Viemed’s products and services isn’t likely going away after just a quarter or two.
COVID-19’s spread put Viemed on the map with investors and that could help the company over the long term obtain a strong reputation for quality products and services can go a long way in the health-care industry.
Currently, the stock’s a bit of an expensive buy, trading at more than eight times book value and around 40 times its earnings. But given the potential it has, a year from now, today’s price could look like a bargain.
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