It’s Time to Buy Allied Healthcare Products Stock Now

Ambitious traders are scrambling to identify stocks that stand to gain the most during the spread of the coronavirus from China. Allied Healthcare Products (NASDAQ:AHPI) stock made impressive gains in February. However, the share price has retraced those gains in March.

Source: Pavel Kapysh /

That’s not a problem if you haven’t already taken a position.

The company should continue to provide shareholder value as the public will still need medical products. Allied Healthcare Products is well positioned to meet the strong demand for medical supplies and home-healthcare equipment.

The Right Product Line

In February, companies offering specific types of products tended to do well. This was especially true for companies providing face masks. It felt like everyone was either wearing a face mask, or at least thinking about it.

But in the real world, people need more than a face mask. There’s a need for respiratory equipment for medically vulnerable patients. Emergency medical supplies are also necessary. Additionally, individuals and families may require home-healthcare equipment.

Allied Healthcare Products offers the respiratory and home-healthcare equipment as well as the emergency medical supplies that businesses and individuals need in a time of crisis.

Therefore, the company participated in the share-price surge of “coronavirus stocks” in February. Apparently, traders realized that the demand isn’t just for face masks. Allied had the right product line at the right time.

However, it appears that the Allied Healthcare Products stock price went up too much, too quickly.

Within a matter of weeks, the share price rocketed from about $2 to around the $40 level. That would be a gain of around 1,900%. It’s awfully difficult to sustain a gain of that magnitude. Traders are bound to do some profit taking.

The Retracement Is Overdone

By early March, Allied Healthcare Products stock pulled back to $11. Then the share price went nowhere for a couple of weeks. This may be due to the fact that there haven’t been any major catalysts or news events pertaining to the company. But then, there have been plenty of general news items surrounding the coronavirus outbreak.

Many people have stayed home due to concerns about contracting the coronavirus, which puts Allied Healthcare Products in a strong position.

The company provides a broad range of critical home-healthcare products including “nebulizers, oxygen pressure regulators, oxygen cylinders, Latex-free disposable oxygen therapy cannulas, masks and tubing, portable large-volume air compressors, portable suction equipment, breast pumps, bag mask resuscitators, and portable oxygen systems.”

But the company doesn’t only specialize in products for the home. It has specialized emergency and trauma-care products for “fire departments, ambulance companies, and emergency medical services volunteer organizations throughout the U.S. and worldwide.” Particularly noteworthy is the company’s LSP AutoVent automatic transport ventilator, which is billed as “the first ventilator designed expressly for the EMS professional.”

It’s also worth noting that Allied Healthcare Products had robust sales even before the coronavirus panic. The company’s most recent U.S. Securities and Exchange Commission 10-Q form indicates net sales of $7.3 million last year. That’s an impressive number for a company of this size. And this year’s sales could easily top that number.

My Final Words on Allied Healthcare Products Stock

Don’t be fearful of the price retreat in Allied Healthcare Products stock.

It still merits a B rating as the company provides essential supplies and equipment. Last year’s sales were already impressive for Allied Healthcare Products, and this year will be challenging for the medical community but could be pivotal for this company.

Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters. 

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