BB:CC - 2 Young TSX Stocks You'll Be Glad You Bought in 10 Years
2023-04-07 14:00:00 ET
As an investor, I’m always looking for those TSX stocks that have the potential to return 1,000%-plus over the long term. In fact, in my well-diversified portfolio, I make room for these high risk/high potential return stocks. All I really need is one of these stocks to make it there to create enormous wealth.
Here are two of these stocks that I think we’ll all be glad we bought in 10 years.
WELL Health Technologies
Listed in June 2017, Well Health Technologies Corp. ( TSX:WELL ) is truly a young TSX stock. But in this short six-year timeframe, it has already grown to a $1.1 billion force to be reckoned with. You see, Well Health is an omni-channel digital health company. It offers digital healthcare solutions for medical clinics and health practitioners globally. It’s also Canada’s largest outpatient medical clinic owner/operator and leading telehealth service provider.
While healthcare systems were already needing Well Health’s solutions back in 2017, the pandemic exacerbated this need immensely. Thus, this drove demand for Well Health’s solutions, which was already high, through the roof. Here we are today, and this demand shows no signs of stopping – and why would it? The benefits to digitizing the healthcare system are clear, immediate, and lasting. They range from greater efficiencies to improved patient care, to eventually personalized health care.
Last quarter, the company reported a 47% increase in revenue to $145.8 million – a record. This was driven by acquisitions and an 18% organic growth rate. Strong patient engagement hit a record, and virtual services soared 191%. All of this led to management raising guidance for the fourth consecutive quarter, and Well Health stock continuing its uphill climb.
The momentum at Well Health clearly remains strong. As this company continues to revolutionize healthcare, Well Health stock and its shareholders stand to benefit greatly. Anyone who invested in Well Health stock in 2017 would have a cool 2,265% return under their belt – and this ride is far from over.
Blackberry stock
Although Blackberry Ltd . ( TSX:BB ) stock has been publicly traded for a very long time, it has not been so long in its current form. If you recall, Blackberry began its journey as a smartphone company. It excelled at that for many years, until one day, it all came crashing down. Missteps and blunders sealed the fate of Blackberry’s smartphone and it was not pleasant.
But out of that came the Blackberry of today. The company hasn’t launched a smartphone since 2016. Instead, it has been focused on creating leading software for two specific, fast-growing industries – the internet of things (IoT) industry, which is all about machine-to-machine connectivity, and the cybersecurity industry.
Today, Blackberry continues to be in the early stages of trying to penetrate and even create these industries. Because for all intents and purposes, these industries are in the early stages as new technologies are taking them into new areas of growth .
Let’s take the IoT industry. This is a multi-billion-dollar industry that’s growing at massive rates. Machine-to-machine connectivity is revolutionizing the medical industry, industrial industry, and most well-known, auto industry.
Blackberry’s ambitions are large. Already, the company is well known as a trustworthy supplier of topnotch software for these industries. Financially, on the other hand, the company is not known for great things, as it continues to lose money. But this is typical of a young company and a young TSX stock, which Blackberry is in its chosen industries.
Why Blackberry stock?
However, things are looking up. For example, in fiscal 2023, Blackberry’s auto software business (QNX) performed really well. It was a record year for design wins, and backlog hit a record high of $640 million. This is foreshadowing of future revenue growth. In fact, management’s guidance for this business is for revenue growth of 17% to 21% in the next fiscal year, with even stronger growth in the years after that. Accordingly, analysts have been increasing their estimates on the stock.
In the meantime, Blackberry remains armed with a low-debt, healthy balance sheet to see it through. In fact, its debt-to-market capitalization ratio stands at a healthy 23%, and its cash balance is currently $487 million.
The post 2 Young TSX Stocks You’ll Be Glad You Bought in 10 Years appeared first on The Motley Fool Canada .
Fool contributor Karen Thomas has positions in Well Health Technologies and Blackberry. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
2023