VieMed Healthcare (TSX:VMD)(NASDAQ:VMD) is a Louisiana-based company that provides in-home
durable medical equipment (DME) and post-acute respiratory healthcare services to patients in North
America. Shares of this health care stock have climbed 12% in 2022 as of close on August 26. However,
the stock has plunged 21% month over month. Today, I want to discuss why I’m looking to buy VieMed
on the dip.
This health care stock put together a huge run in the beginning of the COVID-19 pandemic. The highly
infectious respiratory illness shook our health care systems to their foundation when it crossed the
ocean. Fortunately, VieMed was able to lend a hand by providing ventilators as well as its general
expertise regarding these types of illnesses to publica and private health institutions. It was able to
bolster its revenue over the course of the health crisis.
The company released its second quarter fiscal 2022 results on August 2. VieMed delivered net revenue
growth of 26% to $33.1 million. That was a new record for the company. It grew its ventilator patient
count by 9% to 8,837. This represents the highest quarterly growth in patients since the second quarter
of 2019. Better yet, gross profit rose to $20.3 million – up from $17.6 million in the second quarter of
fiscal 2021.
Shares of this health care stock last had a price-to-earnings ratio of 28. That puts this stock in favourable
value territory compared to its industry peers.
