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Viemed Healthcare: Steady As She Goes

Trending 1 year ago
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Intro

We wrote astir Viemed Healthcare, Inc. (NASDAQ:VMD) successful December of 2021 erstwhile we stated that nan banal was successful nan first innings of a caller bullish trend. Although we were a fewer months early successful our bullish telephone (Shares really bottomed successful March of 2022), investors still would person realized a 67%+ return connected their finance to day if they ran pinch our bargain call. The mobility now is whether Viemed's beardown momentum tin proceed going guardant (Blistering 12-month return of 121%+ to date).

If we propulsion up an intermediate floor plan of Viemed Healthcare, we spot that nan intermediate inclination has really strengthened successful caller sessions (As seen done nan sustained emergence successful nan ADX trend-following indicator). Suffice it to say, fixed VMD stock's powerful intermediate inclination successful motion, location is each anticipation that shares rally backmost up to overhead guidance approaching $11 a stock (The existent stock value is $9.05 per share). A correction investors invariably make pinch their investments is taking profits excessively early. Yes, Viemed's valuation multiples person evidently accrued substantially arsenic a consequence of this latest move but it is not Viemed's responsibility that nan marketplace continues to emotion this stock. Therefore, we urge agelong position holders should stay agelong VMD wherever thing for illustration a trailing extremity tin beryllium utilized to protect insubstantial profits.

Viemed Technical Chart

Viemed Strong Trending Move Over The Past 12 Months (Stockcharts.com)

Share Price Action Discounts Everything

Remember, Viemed's share-price action connected nan method floor plan includes each portion of information, beryllium it basal aliases different that is presently known astir this company. This whitethorn bemuse immoderate investors, particularly fixed nan truth that shares now waste and acquisition pinch guardant GAAP earnings aggregate of almost 50 and statement expects maturation to taper disconnected adjacent twelvemonth (Only 6%+ top-line maturation expected successful fiscal 2024) arsenic we spot below. This is wherever nan discrepancy lies (Forward-looking maturation rates) successful that statement believes location will beryllium a cyclical-type effect connected nan company's maturation path. The market, however, remains oblivious to this cyclicality playing itself retired arsenic shares proceed to make caller highs each week.

Viemed Forward-Looking Consesus Sales Estimates

Viemed Consensus Revenue Trends (Seeking Alpha)

More Favorable Trading Conditions

In fact, nan CEO pointed to this connected nan caller third-quarter net telephone erstwhile he aimed to guarantee investors that a imaginable economical slowdown (most apt fueled by precocious inflation) should not adversely impact Viemed's operations to immoderate important degree. What he was getting astatine present is that labor markets person vastly improved complete caller quarters (More driven income staff) and upward unit (due to above-average inflation) continues to summation reimbursement rates complete time. Suffice it to say, these trends necktie successful very nicely pinch really patient numbers person been increasing for Viemed.

Veterans Administration Potential

Furthermore, nan marketplace whitethorn spot nan ongoing engagement pinch nan Veterans Administration arsenic different catalyst for sustained maturation for nan company. Viemed's Engage level successful this endeavor is to beryllium utilized to way patients suffering from Chronic obstructive pulmonary illness (COPD). Promising outcomes from nan study could easy beryllium nan trigger to rotation retired this inaugural connected a overmuch larger nationwide basis.

M&A & Ruling Win

Furthermore and only recently, Viemed came retired connected apical pinch respect to nan overruling of each remaining OIG claims concerning Medicare requirements. Viemed fundamentally from time 1 refuted OIG claims stating that their findings were acold excessively wide successful quality and lacked individual cases and corresponding diagnoses. There is nary uncertainty that nan favorable determination further enhanced Viemed's estimation and will decidedly adhd much weight to nan company's products and services erstwhile pitching to physicians and payors alike going forward.

For diversification purposes, however, and to bring much worth to nan array successful nan company, successful general, guidance knows it will person to commencement allocating superior overmuch amended and astatine a overmuch faster clip than what we person seen already. Up to now, what we person fundamentally seen is stock buybacks but it was encouraging to spot guidance investing $2 cardinal successful ModoHealth recently, which was an finance that was good earmarked for rather immoderate clip now. Management has stated that Viemed has a scope of M&A opportunities to take from, truthful we expect much accelerated activity successful upcoming quarters.

Conclusion

Therefore, to sum up, though Viemed's valuation whitethorn beryllium getting lofty from nan incessant rally we person seen complete nan past 12 months, share-price action is demonstrating that location is much room near successful this coming rally. Let's spot what Q4 net bring astatine nan opening of March. We look guardant to continued coverage.

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Editor: Naga



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