Enghouse Systems (TSX: ENGH), TFI International (TSX: TFII), and WELL Health Technologies (TSX: WELL) are among the best stocks to invest $1,000 in right now. The three companies are resilient to the pandemic and are growing fast.
Enghouse Systems
Enghouse Systems is a software and services company that supplies products to some of the country’s most stable industries, particularly finance, government, utility, and telecommunications companies.
This company is one of the best stocks to buy as it has a unique combination of growth through its share price and dividend. Enghouse stock has more than doubled in value over one year.
Enghouse has grown its revenue by 13.2% per year over the past 5 years. Its profit growth has been 26.6% over the same period.
This has allowed the company to develop continuously as it has a growth strategy that is heavily dependent on acquisitions. It targets other tech companies with revenues over $5 million, and that revenue preferably comes from recurring revenue streams like monthly subscriptions.
Analysts expect the company to be able to boost revenue by 50% in 2021.
Enghouse has the longest dividend growth streak of any Canadian tech company with 13 years and a 5-year dividend growth streak of 17.19%.
Considering the company has a payout ratio in terms of earnings of just 32%, there is still a tonne of room for the share price and dividend to rise.
TFI International
TFI International is a trucking and logistics company. The company operates in four segments: Package and Courier, Less-Than-Truckload, Truckload, and Logistics. Although the company operates in the United States, most of its revenue comes from Canada.
TFI stock fell quickly in March, hitting the $24 range. The stock is currently trading 170% above these levels. Shares have risen by about 60% over one year.
TFI’s operations as a trucking and logistics company have remained relatively intact throughout the pandemic. When the company released results in June 2020, it reported a drop in revenue of just 8.6% in the first six months of the year. In fact, it reported increases in both free cash flow and adjusted EBITDA.
Most of the company’s lost revenue was attributed to its Package and Courier segment, which was down 24%. However, its truckload operating segments saw their revenues increase.
The company has a nine-year dividend growth streak and has increased dividends at a rate of 10.13% per annum for the past 5 years.
The dividend yield is just 1.7%, but since the payout ratio is only 25%, it should have plenty of room to grow.
WELL Health Technologies
WELL Health is currently one of the best stocks to buy in the healthcare sector. This company owns and operates 20 primary health clinics in Canada and is the third-largest provider of electronic medical records (EMRs) in Canada, providing services to more than 2,000 clinics across the country.
However, the company’s most important asset is its leading national telehealth and digital health technology solutions.
WELL Health has exploded in popularity, with its share price rising more than 500% over one year. The company has been one of the best stocks in the Canadian healthcare industry by far, which is mainly due to the COVID-19 pandemic.
The company provides telehealth services, which were essential for both doctors and patients during the first pandemic lockdowns. As a result, revenue for the first six months of 2020 increased by 40%. Even more impressively, in 2019, the company increased its revenue by more than 200%.
Many Canadians and practitioners have seen the immense benefits that telehealth has provided. Even when COVID-19 pandemic calms down and the economy returns to normal, there is a very good chance that the move to digital appointments will stay.
WELL Health is in the early stages of growth. Analysts expect the company to grow revenue at a 113% rate next year.
