The healthcare space is an intriguing one to be invested in right now. Indeed, those invested in Sonoma Pharmaceuticals (NASDAQ:SNOA) and SNOA stock are seeing the upside potential of this market right now. Currently, shares of Sonoma are up more than 35% at the time of writing.
This move comes as investors appear willing to jump back into companies operating in the non-Covid-related healthcare sector. With elective procedures and other healthcare activities put on pause for a good part of last year and this year due to the pandemic, various medical supplies-related companies have taken a hit. Sonoma Pharmaceuticals is certainly no different.
Now, this company’s decline has been ongoing for a few years prior to the pandemic. However, investors bullish on potential recovery plays are looking to such healthcare supply companies as great rebound stocks in this environment. Sonoma’s various stabilized hypochlorous acid (HOCl) products for wound care, animal health care, eye care, oral care, dermatological conditions and disinfectant use make this a stock that falls into such a rebound category.
However, today, there’s another catalyst taking SNOA stock higher. Let’s dive into what’s driving this stock today.
Amazon Boosts SNOA Stock Today
Today, Sonoma announced it will be launching various consumer brands on the Amazon (NASDAQ:AMZN) platform in Europe. This move is one that brings tremendous growth potential for the company in reaching more consumers and achieving an omnichannel presence in an otherwise physically dominated, retail-oriented sector.
Traditionally, Sonoma has pursued a physician-led supply chain model. With healthcare going virtual, and over-the-counter products such as those provided by Sonoma becoming increasingly available on e-commerce channels, investors have reason to cheer this move. The company hopes this direct-to-consumer model will provide significant growth over the near, medium and long-term.
One might wonder what took so long for this shift to take place. Indeed, the world is shifting its retail orientation more toward the e-commerce space. And this shift has been rapid.
However, the fact that Sonoma is making this move now appears to be a positive for investors. Accordingly, this is a stock that may have some momentum for some time.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.