WELL:CC - WELL Health Stock: Buy Sell or Hold?
2024-01-02 15:45:00 ET
The new year is here, and here’s to ringing in some better opportunities on the stock market. We could in fact see a repeat of what we saw in the last few years, an increase in tech stocks. But if you’re hoping for a renewed rally that’s set to stabilize, consider stocks for their long-term opportunities.
That should include WELL Health Technologies ( TSX:WELL ). WELL stock has been expanding by leaps and bounds over the last few years, and yet shares remain under $4 per share as of writing. So should investors stay away for now, or consider it a great buy on the TSX today?
Looking at earnings
Let’s first look at the company’s latest earnings report to see whether WELL stock might be a good consideration for investors. The company achieved record quarterly revenue yet again, reaching $204.5 million and record adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) at $29.2 million. This was the nineteenth consecutive quarter the company achieved such record performance.
WELL stock also passed 1 million patient visits, with an annual run rate of 6.3 million care interactions on an annualized basis. Its adjusted EBITDA achieved a year-over-year increase of 24%, with all this leading to an increase in annual guidance.
WELL stock now expects to hit between $755 and $765 million in revenue for 2023, coming from improved organic performance. Further, it should surpass $900 million in annual revenue for 2024 in terms of organic growth.
Analysts weigh in
The results led to analysts increasing their price targets for WELL stock, with a resounding “buy” recommendation across the board. The average remains at just under $8 per share, but more and more analysts are pushing that towards the double digits.
The company’s recent results exceeded expectations, providing a huge increase in 2024 estimates. However, WELL stock could still use work when it comes to profitability growth. Mainly, its capital is going towards its primary care arm, according to one analyst, however consolidation opportunities in this area should provide more growth.
Furthermore, the company certainly remains attractive as it continues to expand, especially into newer fields such as artificial intelligence and any other way to create an easier approach to healthcare.
A solid long-term investment
The best part about WELL stock, however, has to be the opportunity as a long-term investment. The company has a long-term growth path because it’s in the area of virtual healthcare. This is going to stick around long after the pandemic is behind us.
That’s now especially true as we continue to experience a shortage in healthcare providers. Virtual healthcare produces easier access to healthcare, without plugging up waiting rooms and creating longer wait times.
And the company’s experience with creating secure methods of charting, and even taking notes for its healthcare practitioners, will create even more expansion opportunities in the future. Clearly, WELL stock will be around long after this recent downturn. And that means now could be a great time to pick it up.
In fact, it seems quite likely that shares could more than double in 2024. So happy new year, and here’s to riches hopefully coming your way. And with WELL stock, that might just happen.
The post WELL Health Stock: Buy, Sell, or Hold? 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 .
2024