Since Friday, stock for Allied Healthcare Products, Inc. (AHPI) has been on a persistent bull, rising north of 33.5%. This was inclusive of a 20.5% climb from yesterday’s trade session alone, stabilizing during the after-hours session. The uptick in AHPI does not correlate with any update or press release specifically linked to Allied Healthcare. However, this movement may be in line due to a broader movement of Covid stocks, given a potential resurgence of the outbreak in China.
Covid Stocks Back in Play?
Over the weekend, China re-implemented lockdowns across major neighborhoods and towns, especially within the Shanghai locality. Reports point to the highest breakout in the country since early 2020, leading to the pandemic outbreak across the globe. The scares of a resurgence, come just as the world was settling down following successful vaccination and booster shots. Now with the future once again drenching in uncertainty, the potential of Covid stocks again makes the news. Major stocks such as Moderna and BioNTech are some of the big names caught up in this wave.
AHPI is potentially caught up within this wave, where Covid stocks seem to be making a comeback. Investors had gradually been shifting away from this class of stocks for the prior six months. Now with a lockdown announced on over 51 million citizens, the market is currently undergoing the initial part of a substantial shift. However, it remains early to assume if things will play out as they did in 2020. With authorities better prepared, and healthcare sectors sufficiently developed, governments stand a substantially better chance in their Covid response. For this reason, market participants remain cautious, not too quick to take long-term positions at present, awaiting further information regarding the development.
Where does AHPI Stand?
Last month, Allied Healthcare reported its financial results for the year. It pointed out how the final quarter of 2020 proved most lucrative for the firm, owing to Covid-related demand. The company had upscaled its capacity for EPV200 and AHP300 ventilators, along with other crucial respiratory treatment products.
AHPI seems to be on what is the beginning of an upward growth spurt. This wave encompasses wider Covid stocks such as Moderna and BioNTech reflecting broader market sentiment. Although there is uncertainty regarding the developments, market participants seem to be betting heavily on this class of stocks. AHPI reported its most successful financial results in 2020 Q4, linking with heightened Covid demand.