Profound Medical (TSX:PRN)(NASDAQ:PROF) is a Mississauga-based medical technology company. It is known for developing a treatment to ablate the prostate gland in prostate cancer patients. Shares have already surged over 50% in 2020 as of close on February 14.
The healthcare sector is one of the fastest growing in North America. This is one of the reasons it is also one of the more attractive targets for investors. Shares have dropped 9.7% over the past week. Is it worth buying the dip, or is Profound Medical still too hot to touch?
Investors can expect to see the company’s fourth quarter and full-year results for 2019 on March 3. In the third quarter, the company announced that it had sold its first TULSA-PRO system in Japan. At the end of the quarter it began trading on the NASDAQ.
Profound Medical is a long-term growth bet. It is currently unprofitable, and this is not expected to change over the next two to three years. The stock has demonstrated volatility over the past year. Still, revenue is poised for strong growth in the coming years. The global medical devices market is set to post attractive growth over the course of this decade.
Shares of Profound Medical rose into technically overbought territory in late January and early February. This dip gives investors the opportunity to buy at a more reasonable level.
