WELL:CC - WELL Stock: 1 of the Best Investments to Buy in April
Ever since late 2019, WELL Health Technologies (TSX:WELL) stock emerged as a high-potential growth stock disrupting the healthcare industry. For years now, it’s been an excellent growth stock to buy, but now with it trading ultra-cheap in April, it’s, again, one of the best investments you can make.
WELL identified early on that for such an important and essential industry like healthcare, there were many areas that were obsolete and an opportunity to modernize the industry. It wasn’t just this mission, that made it an excellent investment, though. It was also WELL’s strategy.
The company’s decision to operate physical health clinics and grow rapidly by acquisition is what’s made it such a high-quality growth company.
Then, in early 2020, the pandemic hit and brought WELL Health a massive tailwind that nobody could have ever expected.
The pandemic and then shutdowns, as a result, forced massive growth in these businesses. And although the pandemic is winding down, that growth has left WELL in a much better position today than it would have been otherwise if the pandemic had never materialized.
So, because the stock has fallen out of favour, it’s been of the best investments you can make for a while. But after reporting impressive earnings again this week, WELL has shown it’s a top stock to buy in April.
WELL stock: Its earnings show it continues to grow rapidly
On Thursday, WELL Health reported earnings for the fourth quarter of 2021, and, once again, the stock beat expectations. The fact that WELL Health managed to beat estimates for both its revenue and EBITDA is even more impressive given the updated business outlooks it’s given in recent months, which have helped analysts to narrow their projections for the stock.
And while investors are always looking for the headline, whether it was a beat or a miss, there is a lot more to digest in WELL Health’s earnings release.
In addition to the fact that it beat earnings expectations from analysts, WELL’s major U.S. acquisitions that it has made over the past couple of years are both growing organically and exceptionally well.
It also delivered over 700,000 omnichannel patient visits in the fourth quarter, which was an increase of more than 120% year over year, showing the continuous progress that it continues to make.
Perhaps the most attractive reason to buy WELL stock today, though, is that for a high-potential growth stock that’s still relatively small, WELL’s profitability is impressive.
Not only has it continued to deliver strong EBITDA margins, but most of its healthcare tech stock peers remain unprofitable. So, with the stock still trading undervalued , it certainly looks like it’s one of the best investments you can make in April.
Here’s why this healthcare tech company is one of the best investments to make in April
Despite the fact that the pandemic is winding down, WELL has proven that it still has tonnes of growth potential. So, while WELL Health is trading so cheap, it’s certainly one of the best investments to buy in April.
Right now, WELL Health trades at a forward enterprise value (EV)-to-sales ratio of just three times. Even its forward EV-to-EBITDA ratio of 14 times is reasonable given the impressive growth that WELL continues to display.
While the stock is trading at an attractive bargain, it’s undoubtedly one of the best investments to make in April.
The post WELL Stock: 1 of the Best Investments to Buy in April appeared first on The Motley Fool Canada .
Fool contributor Daniel Da Costa owns WELL Health Technologies Corp. The Motley Fool has no position in any of the stocks mentioned.
2022