Why Air Methods Shares Dipped and Rebounded Today

Shares of the helicopter-based ambulance service Air Methods dipped this morning after the company pre-announced earnings late yesterday, with the numbers coming in weaker than expected. The company blamed the poor quarter on a number of factors, including weather, and a reduced number of accidents.

However, shares rebounded and Motley Fool analyst Brendan Mathews sees this much more as a buying opportunity than a sign of broader weakness. He notes in this video that, while the company's business is dependent on several external factors and can fluctuate up and down as a result, with a 30% market share and very strong pricing power, this company is a market leader in its industry.

Also, as the number of people covered by medical insurance increases across the country due to the recent Affordable Care Act legislation, the company is slated to benefit by seeing a boost to its reimbursement rate. Investors interested in the stock could view today as a great time to get in.

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The article Why Air Methods Shares Dipped and Rebounded Today originally appeared on Fool.com.

Brendan Mathews has no position in any stocks mentioned. Mark Reeth has no position in any stocks mentioned. The Motley Fool recommends Air Methods. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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