WELL:CC - 1 Dirt-Cheap Growth Stock I've Been Drip-Feeding in 2023
2023-05-25 15:15:00 ET
There aren’t too many growth stocks out there I’d consider a great deal these days — not growth stocks, anyway. There are certainly strong options for investors to consider if they want to hold long term. But if you’re looking for a stock to help you recover from the losses of this year, consider this one that I’ve been drip-feeding in 2023.
WELL Health Technologies
WELL Health Technologies ( TSX:WELL ) has been in my portfolio for a while now. I’m guilty of hopping on the pandemic restriction bandwagon, seeing the opportunity for WELL Health stock to rise during that time, which, of course, it did!
It certainly helped that it was a tech stock , which is why the growth stocks surged about 1,650% from 2019 to peak prices in 2021. However, from there it was a straight fall downwards. Pandemic restrictions eased, and tech stocks saw a massive drop in share prices.
Since March 2021, shares fell 72% before seeing some sort of recovering in the last year. Now, shares are up 76% since hitting 52-week lows and 58% year to date. And I’ve been drip-feeding that whole time.
What I continue to see
There have certainly been trials that WELL Health stock has had to face, but that’s true for every other company out there. Namely, inflation and interest rates have been hurting WELL Health. That being said, this has mainly led to missing analyst estimates, but not records.
Yes, WELL Health stock continues to see record revenue performance quarter after quarter. Most recently, it saw quarterly revenue increase 34% year over year to $169.4 million. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was also up 14% to $26.7 million.
What was seen as positive results led to the company increasing its annual guidance to between $690 and $710 million in revenue for 2023. This would be a 10% increase, and WELL Health stock has a good track record of meeting those levels.
Acquisitions continue
While the market may be down, this hasn’t led to a decrease in the company’s growth. It remains the largest outpatient clinic in Canada, with more growth in the United States. This is added to by the stock continuing to pick up smaller companies, providing even more telehealth opportunities.
Most recently, WELL Health stock acquired five primary care clinics in Calgary for $2 million. The stock believes this will contribute $10 million in revenue. It will add 50 physicians based on historical results, the company stated, adding to the 3,000 across North America. It is expected to close in the second quarter.
Further, the stock announced the launch of WELL AI Voice to help providers with keeping patient encounters private and secure. It will generate a “succinct and medically relevant chart note,” providing doctors with 30% more time back, according to a statement.
Bottom line
There is so much room to grow for WELL Health stock, and analysts realize that. The company continues to be a growth stock up 58%, sure, but a potential target price sits at $8.25 as of writing. That would provide today’s investor with an upside of 83% as of writing! So, yes, I’ll continue to drip feed into this growth stock, even as it surges higher.
The post 1 Dirt-Cheap Growth Stock I’ve Been Drip-Feeding in 2023 appeared first on The Motley Fool Canada .
Fool contributor Amy Legate-Wolfe has positions in Well Health Technologies. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
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