VieMed Healthcare (TSX:VMD)(NASDAQ:VMD) is a Louisiana-based company that provides in-home durable medical equipment and post-acute respiratory health-care services to patients in the United States. The company has seen demand for its services surge during the COVID-19 pandemic. It provided ventilators to entities in the public and private sphere at the height of the crisis.
Shares of VieMed have dropped 5.8% in 2021 as of close on May 28. The stock is now down 20% from the prior year. VieMed released its first quarter 2021 results on May 3.
Net revenues in Q1 2021 rose to $25.5 million – up $2.7 million or 12% from the prior year.
However, net income fell to $1.7 million compared to $4.2 million in Q1 2020. The first quarter of 2020 included $1 million of revenue and $2.5 million of proceeds on used equipment sales related to the COVID-19 pandemic. Now, with the U.S. finding its way out of the pandemic, VieMed’s operations are returning to normal.
VieMed is still a very promising health-care stock. Demand for its in-home durable equipment are still set to strengthen even in the aftermath of this damaging pandemic. Indeed, the crisis has shown the dire need to improve care in this crucial arena.
Shares of VieMed possess a favourable price-to-earnings ratio of 11. Moreover, the stock last had an RSI of 25. This puts VieMed in technically oversold territory. Now is a perfect time to jump on this stock.
