The COVID-19 pandemic has shone a spotlight on the global health care space. Some stocks have benefitted more than others. Today, I want to look at one TSX stock that has lost the momentum it gathered in 2020.
VieMed Healthcare (TSX:VMD)(NASDAQ:VMD) is a Louisiana-based company that provides in-home durable medical equipment and post-acute respiratory healthcare services to patients in North America. Its shares have dropped 16% in 2022 as of close on January 26. Moreover, the stock has plunged 48% in the year-over-year period.
Investors can expect to see its fourth quarter and full year 2021 earnings in early March. In Q3 2021, VieMed reported revenues of $29.2 million – down from $33.4 million in the previous year. Gross profit also dipped marginally to $18.3 million. In the year-to-date period, revenue dropped to $85.1 million compared to $100 million in the first nine months of 2020. Moreover, gross profit was reported at $53.7 million – down from $60.9 million in the prior year.
The ongoing COVID-19 pandemic is still having a positive impact on VieMed Healthcare, although that growth has slowed significantly. Even in a post-COVID world, VieMed’s business looks geared up for a promising future.
Shares of VieMed Healthcare possess a favourable price-to-earnings ratio of 18. It had an RSI of 29 as of close on January 26. That puts VieMed stock in technically oversold territory. This is a healthcare stock worth snagging on the dip in late January.
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