AND:CC - These 2 Healthcare Stocks Are Set to Soar in 2024 and Beyond
2024-05-10 16:40:00 ET
The future is aging. But it’s also changing. Technology has created more demand for innovation and growth. Meanwhile, an aging population has meant more support in the field of healthcare .
The COVID-19 pandemic accelerated the digital transformation across industries, including healthcare. Telemedicine, remote patient monitoring, and digital health platforms became essential, highlighting the importance of technology in healthcare delivery. Tech companies providing infrastructure, software, and services for these transformations are seen as long-term beneficiaries.
Now, with an aging population, there is a way for investors to get in on these healthcare stocks as they continue to expand. And when it comes to this growth, these are the two I would consider first.
WELL Health
WELL Health Technologies ( TSX:WELL ) is a Canadian healthcare technology company that operates primary healthcare facilities and provides digital health solutions. It offers a range of telehealth services, electronic medical records (EMR) software, and patient engagement tools.
During the first quarter of 2024, WELL stock achieved record quarterly revenues of $231.6 million in the first quarter (Q1) of 2024, representing a significant increase of 37% compared to Q1 2023. This growth was driven by both acquisitions and organic growth, with a notable 13% increase organically.
Furthermore, WELL stock demonstrated improved profitability, with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increasing by 6% year over year to $28.3 million in Q1 2024. Additionally, WELL achieved net income of $19.6 million, compared to a loss of $10.6 million in Q1 2023. Adjusted net income was $20.2 million, marking a 43% increase from Q1 2023.
WELL stock also increased its guidance range for 2024 annual revenue to between $960 million to $980 million. Overall, it has demonstrated strong financial performance, with significant revenue growth, improved profitability, and increased free cash flow, setting up for strong long-term potential.
Andlauer
Another company to consider in this growing and improving sector is Andlauer Healthcare Group ( TSX:AND ). AND stock specializes in providing customized supply chain management solutions to the healthcare sector in Canada. The company focuses on transporting and managing pharmaceuticals, medical devices, and healthcare products, catering primarily to hospitals, pharmacies, clinics, and other healthcare facilities.
Now, here, investors may have to be patient, given that recent earnings demonstrated a drop on a year-over-year basis. Andlauer reported a decrease in revenue of 2.2% compared to Q1 2023, primarily driven by lower revenue in its U.S.-based truckload business and Accuristix, partially offset by organic growth in Canadian specialized transportation.
Furthermore, the company’s operating income decreased to $21.2 million from $23.7 million in Q1 2023. This decline may raise concerns about the company’s operational efficiency and profitability. Andlauer stock reported a decrease in net income to $14.9 million, or $0.35 per share (diluted), compared to $16.5 million, or $0.39 per share (diluted), in Q1 2023. Similarly, earnings per share declined by $0.04 compared to the same period last year.
Despite the decline, Andlauer stock provided insights into its future outlook, including expectations for revenue growth and operational performance. Therefore, this could be a solid long-term hold, especially for patient investors looking for a deal.
The post These 2 Healthcare Stocks Are Set to Soar in 2024 and Beyond appeared first on The Motley Fool Canada .
Fool contributor Amy Legate-Wolfe has positions in Well Health Technologies. The Motley Fool has positions in and recommends Andlauer Healthcare Group. The Motley Fool has a disclosure policy .
2024