Canadian and U.S. indexes enjoyed some respite from the ongoing market crash on Thursday, March 19. The S&P/TSX Composite Index was up 542 points in late afternoon trading before the day closed.
Bear markets are always scary, but they also provide a great opportunity for investors to add high-quality equities at a discount. This market crash put an end to one of the longest bull runs in history, so this is an opportunity we haven’t seen in some time.
Today I want to look at three of my favourites that Foolish readers may want to pick up before this brutal month of March concludes. Let’s jump in.
VieMed Healthcare
The health care sector was my favourite target before this bloodbath, and it has grown even more attractive in the aftermath. VieMed Healthcare (TSX:VMD)(NASDAQ:VMD) provides in-home durable medical equipment and health care solutions to patients in the United States. Its shares shot up 15% on March 19.
VieMed has a role to play in the COVID-19 outbreak, which is another reason it should draw investor interest today. COVID-19 is particularly dangerous to those who are already struggling with chronic respiratory illness. In the fourth quarter of 2019, this company grew its active ventilator patient base by 31% compared to the prior year.
Hospitals will feel the burden as COVID-19 cases increase across the United States. VieMed’s equipment and respiratory therapists will likely be called upon in this crisis.
Beyond the threat of COVID-19, VieMed boasts a fantastic balance sheet and has promising growth potential. Shares last had a favourable price-to-earnings ratio of 17 and a price-to-book value of 2.9.
Jamieson Wellness
Jamieson Wellness (TSX:JWEL) is a Toronto-based company that develops, manufactures, distributes, sells, and markets natural health products in Canada and across the world. The stock has been resilient in the face of the global sell-off. Shares have only dropped 1.6% in 2020 as of close on March 19.
The company debuted on the TSX back in 2017, and management held out hope that an aging population would fuel domestic and international sales. This outbreak has already led to a more health-conscious population, so it may provide a boost to nutrition and supplements companies like Jamieson. In 2019, Jamieson saw revenue increase 7.9% to $345 million and adjusted EBITDA climbed 11.8% to $25.6 million.
Shares of Jamieson possess a P/E ratio of 31 and a P/B value of 3.6, which still puts it in solid value territory relative to industry peers.
Kinaxis
This past week, I pinpointed a stock that was – at the time – the best performing on the TSX in the middle of this market crash. Kinaxis (TSX:KXS) is an Ottawa-based technology company that provides supply chain solutions software for its growing customer base. Its shares have managed to break even in 2020 as of close on March 19.
The COVID-19 outbreak has put a spotlight on the health of domestic and international supply chains. Kinaxis has drawn interest from some of the largest clients on the planet as its world class software offers supply chain management and optimization.
In 2019, the company reported total revenue of $191 million – up 27% from the prior year. Profit jumped 62% to $23.3 million and adjusted EBITDA posted 38% growth to $57.7 million. Some of its recent customer additions include the British-Dutch transnational giant Unilever and Merck & Co., one of the largest pharmaceutical companies in the world.
Kinaxis boasts an immaculate balance sheet and promising growth potential.
