Hi there,
Andlauer is one I like and recently answered another member. Here was my response:
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Hi there,
I do quite like Andlauer Healthcare. It is a leading healthcare logistics company that has been growing at a pretty healthy clip. Over the next couple of years, the company is expected to grow revenue and profit in the mid teens. The nice part about AND compared to many other healthcare stocks (telehealth in particular) - the company is profitable.
It isn't cheap however - trading at 45.48 forward earnings. Based on the company's expected growth rates - this is a little expensive. However, the company is considered an expert in this healthcare supply chain industry and has a pretty good grip as a leader in this area. It has been one of the best performing stocks on the index, up by 135% year to date.
Long-term, I certainly think an investment in this company will perform quite well. I do however, question current valuations as it does seem a little expensive. It is a newly-listed company, an since it went public on the main TSX Index, it has missed in 2 of the last 3 quarters. Analyst are mixed on the company and it is trading at premium to one-year estimates of $44.00 per share.
I'd consider AND a buy-the-dip candidate and I'd still like to see a little more in terms of historical performance from the company. There is no doubt however, that it has been a strong performer and I very much like the industry in which it operates.
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Since my response from a couple of weeks ago, there has been no notable news of note. It has however, continue its downtrend and is now down by approximately 13% over the past month. This is not specific to AND, but the entire healthcare industry has been on a steady downtrend over the past little while. It's actually not limited to healthcare stocks, but those that benefited from the pandemic are seeing profit taking on positive vaccine news.
That being said, this is still a stock that is up 84% this year - and it is trading at 40 times forward earnings. So it's definitely not cheap. After its recent drop however, it is now trading at a discount to one-year estimates. It is also nearing oversold territory with a 14-day RSI of 35 - not quite there yet but close.
Outside of this, not much has changed since my original response.
Mat