The health care sector in North America has remained my favourite target in the early part of the 2020s. Technology stocks outpaced health care in the 2010s, but that could change as demographics will play a big role in heightening demand for crucial health care services. The S&P/TSX Capped Health Care Index fell 0.28% on Monday, April 24. Today, I want to zero-in on one red-hot health care stock that I’m watching this spring.
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 the United States. Shares of this health care stock have climbed 18% month-over-month as of close on April 24. VieMed stock has now increased 52% so far in 2023.
This company released its fourth quarter and full year fiscal 2022 earnings on March 2, 2023. In Q4 2022, the company delivered record net revenues of $37.5 million – up from $31.9 million in the fourth quarter of fiscal 2021. Net revenues for the full year rose to $138 million compared to $117 million in the previous year. Moreover, its full year gross profit jumped to $84.6 million over $73.4 million in fiscal 2021.
Shares of this health care stock are trading in favourable value territory compared to its industry peers. VieMed boasts an immaculate balance sheet and it is on track to post strong earnings growth going forward.
