WELL:CC - Better Buy in April: Well Health Stock Vs. TC Energy Stock
2024-04-10 16:10:00 ET
It’s usually a good idea to compare apples to apples and oranges to oranges — i.e., stocks that are the same in several categories like size, industry, sector, target market, etc. However, when your main goal is to leverage a bullish trend, it’s usually a good idea to compare stocks from different sectors and magnitudes to identify the picks that offer you the best chance to capitalize on the positive trend.
An energy giant
TC Energy ( TSX:TRP ) is one of the best energy stocks you can buy in Canada in April and almost any given month. But the 30% discount the stock is still trading at makes it an attractive buy. This has pushed its yield up to 7.4%, making it one of the most generous aristocrats in the energy sector right now.
However, there are other major appeals of this stock. It’s a pipeline stock, a relatively safer breed within the energy sector.
Also, the bulk of its business is focused on natural gas, making it even more compelling than other pipeline stocks in Canada. Natural gas (because of fewer emissions compared to oil) may have a brighter future than oil-heavy stocks, pipelines, or upstream. The stock is also quite reasonably valued right now.
When it comes to capital-appreciation potential, it was modest at best, even at the prime of its growth, but that’s a virtue of its size and business model.
A healthcare and tech stock
Well Health ( TSX:WELL ) is a healthcare company that aims to leverage the right technologies to make healthcare more accessible to the masses and healthcare delivery more digitized. The company has a portfolio of facilities and over 3,400 healthcare professionals operating under its umbrella. In addition, the Well Health platform is used by over 34,000 healthcare professionals.
The stock experienced unprecedented growth during the COVID pandemic, and for good reason. Healthcare stocks received a lot of limelight during the pandemic, and as a company that offers virtual healthcare services, it was perfectly positioned to serve a broad market.
It caused the company to grow over 500% in less than a year. Since then, it has been in an extended correction mode, but now that the company is experiencing organic growth in its reach and numbers, there is reason to be optimistic about the stock.
- We just revealed five stocks as “best buys” this month … join Stock Advisor Canada to find out if TC Energy made the list!
Foolish takeaway
The choice between the two is less about the stocks themselves and your investment goals and risk tolerances. TC Energy is a no-brainer buy if your goal is generating investment income. But if you are looking for rapid growth and have adequate risk tolerance, a healthcare and tech stock like Well Health might be the right pick.
The post Better Buy in April: Well Health Stock Vs. TC Energy Stock appeared first on The Motley Fool Canada .
Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
2024