INFU Up Big on Covid Possibilities?

Posted on December 21, 2020 by Aaron Warwick

InfuSystem (INFU), a national healthcare service provider, has traded today on heavy volume with the stock up 10%. This is after the stock already ran 30%+ after their latest earnings release. INFU is in a unique position as it relates to the Covid pandemic. While their integrated therapy services (ITS) revenues were slightly harmed by the pandemic, the company was able to capitalize significantly on the durable medical equipment (DME) side of the business, offsetting the temporary headwinds to ITS. With the new Covid strain identified in the UK, many investors are again looking for stocks they expect to weather another possible Covid storm. Again, INFU is uniquely positioned because of their diversity of business. If another wave of Covid hits, they are likely to capitalize on the DME side. If the strain does not lead to further complications, then the ITS business will continue its explosive growth. Of course, it’s entirely possible that both of these things happen–that INFU takes advantage on the DME side while still growing the ITS business significantly in 2021.

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