4 Hot COVID-19 Stocks From Health Care Sector: WELL Health, Viemed, StageZero & Akumin

Be the First to Comment Read

4 Hot COVID-19 Stocks From Health Care Sector: WELL Health, Viemed, StageZero & Akumin

 4 Hot COVID-19 Stocks From Health Care Sector: WELL Health, Viemed, StageZero & Akumin

Summary

  • The Canadian healthcare space is ripe for disruption as the industry continues to struggle with operational challenges and low technology solutions.
  • However, under pressure from an unprecedented pandemic, the health care segment is rapidly evolving, pushing out top-notch digital facilities and quick testing platforms in 2020.
  • We look at four health care companies – WELL Health Technologies, Akumin Inc, Viemed Healthcare and StageZero Life Sciences – that have consolidated their positions as growth stocks.

Under duress from an unprecedented pandemic that knows no border or respect for human life, the health care industry has rapidly evolved in 2020, pushing out top-notch digital facilities and quick testing platforms.

Developments in the last five to six months show that the current Canadian healthcare space is ripe for disruption. The industry is dogged with operational challenges fueled by COVID-19 lockdown and lack of latest technology applications. Apart from technological solutions, Canada’s healthcare challenges can also benefit from increased use of virtual tools, precision medicine, clinic operational efficiency – all aimed towards diminishing daily roadblocks. Going forward, we’ll see more focus on virtual care and technology along with an emphasis on quality.

The four healthcare stocks discussed below – WELL Health Technologies, Akumin Inc, Viemed Healthcare and StageZero Life Sciences – have consolidated their positions as growth stocks in the pandemic market. Here’s a detailed look at stock performances of each:

WELL Health Technologies Corp. (TSX: WELL)

The stock prices of WELL Health Technologies have tripled in value this year. The company has been tapping into the virtual future of health care by creating platforms such as VirtualClinic+ and telehealth service that can be accessed on phone or video by both patients and physicians.

Scrips of WELL Health Technologies has yielded a remarkable 3500+ return over five years. The shares have advanced by 230 percent year-to-date. It posted 74 percent growth in three months and nearly 66 percent gains in one month.

WELL Health has been able to ride out the pandemic-led stock market crash by leveraging evolving trends in the health and wellness sector, consolidating its position as a growth stock.

Its market capitalization has grown from C$ 410 million to C$ 675 million in less than two months. WELL’s second quarter 2020 revenue went up 43 percent year-on-year to C$ 10 million, while gross profit swelled to C$ 4.2 million, recording 88 percent YoY growth.

The omni-channel health care services provider is also a supplier of Electronic Medical Records. Its digital portfolio has over 15 million registered patients, ~1,446 clinics in Canada, which are supported by over 8000 general practitioners (GPs). In the clinic portfolio, the company has 19 wholly owned clinics and over 180 doctors.

WELL graduated from TSX Venture Exchange to the main TSX Exchange in January 2020.

Viemed Healthcare Inc. (TSX: VMD)

Viemed Healthcare’s net revenue in second quarter 2020 surged by 111 percent year-over-year to US$ 42.9 million on the back of increased sales amid ongoing COVID-19 pandemic. It ended the latest quarter with a current cash balance of US$ 29.7 million (up from US$ 13.4 million in December 31, 2019) and an overall working capital balance of US$ 17.4 million (up from $1.9 million at December 31, 2019).

The company’s stocks gained over 77 percent this year. On the quarterly and monthly scale, the scrips grew by 31 percent and 2 percent, respectively.

Viemed Healthcare provides in-home health care solutions for disease management, offering services for respiratory patients and related equipment for neuromuscular care and oxygen-therapy services. Demand of the firm’s products have grown amid pandemic, especially over necessity for ventilation equipment.

It has a current market cap of C$ 552 million and P/E ratio of 14.40.

StageZero Life Sciences Ltd. (TSX: SZLS)

The C$ 39 million- cancer diagnostic firm ventured into COVID-19 testing through its telehealth platform during the pandemic. The move has gone down well with the equity markets that are riding on hopes of COVID vaccine and quick COVID testing.

StageZero’s shares have posted a remarkable 111 percent gains this year and advanced 46 percent in a month.

The company reported a consolidated net income of US$ 0.2 million in Q2 2020 financial results, as compared with a consolidated net loss of US$ 0.7 million for the same period in 2019. It received revenue of approximately US$ 1 million and signed multiple new partner in Q2 2020.

The ability to quickly initiate PCR (polymerise chain reaction) and antibody COVID-19 testing has helped the company survive in the unprecedented economic downturn.

StageZero is primarily a molecular diagnostic company focused on early cancer detection through genomic-based screening. Analysts estimate the company has the potential to be the top liquid biopsy solution firm with its Artistotle test’s ability to detect different types of cancer from a single blood test at an initial stage.

Akumin Inc. (TSX: AKU)

Shares of diagnostic and imaging services firm Akumin have declined by over 38 percent this year due to the COVID-led market crash. However, the stocks are currently in strong recovery mode, gaining over 56 percent since its March lows. Over the last one month and a quarter, the company shares yielded 18 percent and 2 percent returns, respectively. Its current market cap is C$ 209 million.

The company’s shares have lifted after lockdown measures were eased and overall understanding of the coronavirus improved among people.

In its latest Q2 Fiscal 2020 financial results, Akumin’s adjusted EBITDA was US$ 13.7 million, against US$ 12.2 million in the same period last year. It ended the quarter with US$ 28.1 million cash in hand.

Disclaimer

Speak your Mind

Featured Articles

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK