Investors can make a tonne of money by trading in and out of stocks quickly. As exhilarating as day trading can be, accumulating substantial wealth is better when you look at stocks as parts of real businesses instead of just assets with fluctuating values. Invest in quality businesses over a long period, and you can enjoy a massive wealth as a result.
I am going to discuss Well Health Technologies (TSXV:WELL), BCE (TSX:BCE)(NYSE:BCE), and Badger Daylighting (TSX:BAD). Stocks from the three companies have the potential to help you become healthy, wealthy, and wise in 2020.
Canada’s healthcare sector is old and inefficient. The industry is quite expensive to fund and in dire need of improvement. Well Health comes in as that vital disruptor for the sector to make much-needed improvements with a strategic approach. The firm owns 19 medical clinics operating in British Columbia, employing almost 200 physicians.
Well Health’s use of technology, however, is the reason why it can offer Canadian healthcare the boost it needs. It has a software as a service (SaaS) segment that provides services to more than 850 clinics and north of 4,000 doctors. It is one of the largest electronic medical record service providers in Canada.
The $195.32 million market capitalization company might not be a massive entity on the TSX, but it is poised to get there. The phenomenal growth stock has grown by more than 290% in the past 12 months, and its shares currently trade for $1.69.
BCE is Canada’s largest communications company and the second-largest wireless services provider in Canada. The high-performing stock had an impressive year in 2019, growing 11.13% year over year to trade for $62.69 per share at writing.
The company has a robust capital structure, and it is continuously experiencing subscriber growth for all of its services. Increasing revenue generation is not just allowing the stock to exhibit respectable capital gains. The company also has plenty of free cash flow to fuel its dividend payments for the long term.
In its most recent quarter, BCE’s earnings grew 6% to $922 million, and it added more than 204,000 new subscribers to the client of its wireless services base. The company’s operating cash flow also increased to an excellent $2.26 billion. The company’s 5.06% dividend yield also puts it in an ideal position to consider.
A wise investor will understand the value that undervalued stocks present. Investing in value stocks can help you capitalize on the massive potential of a company as it grows in the long term. Badger Daylighting is a stock that I feel was beaten down in 2019, and it could bounce back with phenomenal returns.
The company had a rough six months as 2019 ended. The company had to reset its guidance expectations in the fall of 2019. The rough second half of 2019 ended with the stock up by barely 9%; it had been sitting on 45% at one point.
With the bad news now digested and reflected in its share prices, the Badger stock is starting to climb up again. The company is trading at around 15% discount to its average in the past five years with a forward price-to-earnings ratio of just 17.
At writing, the stock is trading for $34.70 per share with plenty of upside potential.
Well Health stock and Badger Daylighting stock offer you the opportunity for growth through potentially substantial capital gains. BCE is a stock that is historically a high performer and provides shareholders insulation from economic downturns.
I think allocating portions of your savings to the shares of all three stocks can help you grow your wealth in the long run.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Adam Othman has no position in any of the stocks mentioned.