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Below is an excerpt from a complimentary research note by our Healthcare Team of Tom Tobin, William McMahon, and Justin Venneri. We are pleased to announce our new Sector Pro Product Health Care Pro. Click HERE to learn more. |
COVID-19 FEARS ARE FADING FAST
At peak re- open optimism in February 2021, we were still low on signs that pent- up demand was actually emerging, and starting to doubt that it existed at all.
We found an aptly named survey from the US Census called "Indicators of Reduced Access to Care Due to the Coronavirus Pandemic During Last 4 Weeks" which continues to renew our confidence that the #reopen, while well underway for other sectors, has only just begun for health care.
Over the course of 2020, between 35% and 40% of those surveyed reported either delaying or not receiving care because of COVID-19.
According to the survey, the trend started improving in mid- March and has steadily improved as vaccination rates rose, adding 20% to the population of medical consumers in only the last few weeks.
We've heard comments on earnings calls that February was weak, but March and April were recovering. We're seeing the signal emerge in more data sets now, and we hear it in our conversations with providers more frequently too.
An owner of an imaging center told us recently that he had a backlog of patients for the first time ever.
All we have to do now is figure out how big the demand will be and where its likely to show up. We're seeing it in physical therapy trends (FAII), eye exams (EYE), prescriptions (GDRX), and genetic testing (NTRA), with more names to explore.
READ MORE: Hedgeye Healthcare | Position Monitor & Watchlist Company Updates ($EXAS, $NVTA)
