Once known for providing spa services in airports, XpresSpa (NASDAQ:XSPA) pivoted to an odd but much more potentially lucrative business model in 2020. As a result, XpresSpa stock has made sizable moves this year — despite the pandemic.
Some companies added services during the onset of the novel coronavirus. But XpresSpa did a full-on U-turn. Back in April, it announced a plan to pursue Covid-19 testing and screening at airports in the United States. About the change, the company has said:
“XpresSpa’s U.S. airport real estate portfolio consists of 46 locations across 23 airports that are ready to be reactivated and redeployed in short order, subject to the approval of local airport authorities.”
With this, XpresSpa suddenly became an aggressive novel coronavirus tester. But does that mean that XSPA stock is nothing more than a Covid-19 testing stock now? Given a recent development, there’s reason to believe that the company is ready to diversify and expand its services even further.
XpresSpa Stock at a Glance
Initially, XpresSpa stock sank when the novel coronavirus took hold in the United States. At one point in March, shares hit a low of just 15 cents apiece.
Today, however, there’s no way to get the shares at that price. By the end of October, XpresSpa stock had ascended to $1.86. Along the way, the stock touched a breathtaking 52-week high of $8.82, when traders pounced on just about any stock associated with Covid-19.
It’s actually a good thing that the mania has now passed, though. Sure, the bulls would have probably preferred that the company not fall so far from its high. But if you don’t already own the shares, now is an opportunity to own XpresSpa at a more reasonable price.
With the shares stabilizing throughout September and October, investors can feel more confident that any appreciation in the price will be steady — not based on hype.
Expanding Beyond Covid-19
Some traders might be concerned that XpresSpa’s business framework is too narrow. They may feel that specializing only in Covid-19 testing at airports is too restrictive.
Not long ago, though, the company provided a decisive response to this concern. Specifically, it announced a plan to expand its airport testing services beyond Covid-19.
Reportedly, XpresSpa is set to provide rapid testing for diseases including “flu, mono and strep throat.” Plus, the company is offering this season’s flu vaccine.
On top of that, XSPA also offers a quadrivalent high-dose flu vaccine geared towards seniors. This is a savvy move during a time when the pandemic has travelers focusing heavily on their health in general.
Of course, though, only time will tell how successful this service diversification will be. Shareholders should check regularly for updates from XpresSpa as it works to broaden its horizons.
Not Ignoring Covid-19 Testing
Don’t get the wrong idea here, however. Just because XpresSpa is broadening its services doesn’t mean its slacking on Covid-19 testing.
In fact, the company just recently announced the opening of XpresCheck — a new Covid-19 testing facility at Boston’s Logan International Airport. This facility comprises seven testing rooms, and the company anticipates it will be able to administer more than 400 tests per day.
As CEO Doug Satzman notes, the new XpresCheck at Logan is the company’s “first testing facility outside of the New York metro area, and third to date.”
Encouragingly, Satzman also envisions “national expansion,” saying that the company is “in active discussions with other airports.” Needless to say, it will be interesting to find out what cities are next, especially because this geographic expansion could have a positive impact on XpresSpa stock and its revenues.
Bottom Line
It will take some time before we know whether these new diversification efforts are successful or not. But at the very least, the company’s recent moves should be encouraging for investors in XpresSpa stock.
Sooner or later, this could impact XpresSpa’s bottom line in a significantly positive way.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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.
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