This past weekend, I’d discussed how millennials could start to build a green energy-focused portfolio. Millennials should aim to get in early on the industries of the future, as the economic crisis promises to be transformative in many ways. Healthcare is one of the best spaces for young investors to seek exposure to right now. Today, I want to look at a few healthcare stocks worth holding in your portfolio.
Why millennials should seek out healthcare stocks
The aging population across the developed world will see demand soar for healthcare products and services. Some of the trends projected over the next decade speak for themselves. We can expect to see more patients, more information, a greater emphasis on technology, and greater focus on the patient as a consumer. Meanwhile, a recent ResearchAndMarkets report projected that the global healthcare market would reach $12 trillion by 2022.
Below are three healthcare stocks that millennials should keep on their radars to start this decade.
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One healthcare stock that shares traits with a top tech performer
Andlauer Healthcare (TSX:AND) is a Vaughan-based supply management company that specializes in transportation solutions for the healthcare sector in Canada. Kinaxis has emerged as a top performer in the technology space due to its supply chain software offering. Shares of Andlauer have climbed 87% in 2020 as of close on July 10.
In the first quarter of 2020, the company saw revenue increase 14.4% year over year to $81.7 million. Moreover, operating income rose 13.6% to $12.4 million and EBITDA grew 9.2% to $18.8 million. Fortunately, Andlauer has moved forward without a service disruption in the face of the COVID-19 pandemic. Its business looks resilient in the face of this broader downturn.
Andlauer recently announced its first dividend of $0.06087 per share. This represents a very modest 0.5% yield. Regardless, this exciting tech and healthcare-linked stock belongs in a millennial portfolio.
Two more healthcare stocks for millennials this summer
WELL Health Technologies (TSX:WELL) is a Vancouver-based company that owns and operates a portfolio of primary healthcare facilities. Its shares have climbed 106% in 2020 so far. Meanwhile, the COVID-19 pandemic has led to a digital revolution in the healthcare space. Doctors and patients are adjusting to new methods of care, which includes online consultations.
In the first quarter of 2020, the company achieved record quarterly revenue of $10.2 million. This was driven by stunning 918% year-over-year growth in its digital services revenue segment. Better yet, WELL reiterated that these revenues are predominately high margin recurring SaaS revenue from its OSCAR EMR related services. Millennials should keep an eye on opportunities for entry in WELL Health.
VieMed Healthcare has seen its business boom during the COVID-19 pandemic. It was one of the few companies to boost its guidance in the face of the crisis. The company provides in-home durable medical equipment and health care solutions to patients. It is a large supplier of ventilators, which have been in huge demand during the pandemic. In the second quarter, VieMed expects to generate roughly $20 million of product sales related to COVID-19. Shares of VieMed have climbed 76% in 2020. This is a promising healthcare stock that millennials should consider targeting this summer.
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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 Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Viemed Healthcare Inc. The Motley Fool recommends KINAXIS INC.