Hotter Than Shopify: These 2 Stocks Are up Over 300% in 2020

These two telehealth stocks are soaring higher than Shopify Inc (TSX:SHOP)(NYSE:SHOP).

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When it comes to fast-growing stocks on the TSX, it’s hard to not mention Shopify (TSX:SHOP)(NYSE:SHOP). The Ottawa-based e-commerce giant is usually a high performer, and 2020 has been no exception, as consumers spend even more of their money online amid the coronavirus pandemic. Although the company’s growth rate has been declining in recent years, it skyrocketed in its last quarter, where sales were up 97% year over year (in 2019, its sales rose by 47%). And so it’s little surprise that the stock has been scorching-hot this year, rising approximately 160% year to date.

Shopify looks to be as good of an investment as it’s ever been. And with the company still pursuing even more growth opportunities, there’s little reason to expect that things will slow down anytime soon. Already the most valuable stock on the TSX, the sky is the limit for Shopify. It’s a benchmark for many growth companies, as investors are often looking for what could be the next Shopify. But as well as the tech stock has performed this year, there are two stocks that are doing even better.

Well Health

Well Health Technologies (TSX:WELL) stock is up over 400% this year, as it’s also benefited from changing trends amid the pandemic. The primary care company operates 19 clinics in Canada, but it’s also making moves into telehealth. In September, it announced it would be acquiring Circle Medical, a U.S. healthcare company that offers primary care and telehealth services.

Telehealth stocks have been hot buys this year, as investors look to what the future of healthcare might look like, even after the pandemic is over. And while there will surely be a drop off in the number of patients using telehealth, it’s a service that’s likely here to stay.

When Well Health released its second-quarter results in August, it recorded a 730% increase in telehealth visits from the previous quarter. Sales of $10.6 million were up 43% year over year, and its digital services revenue increased by more than 1,200%. The company’s been firing on all cylinders and its share price could continue rising.

CloudMD

CloudMD Software & Services (TSXV:DOC) is another company in the healthcare industry that’s been on fire this year. CloudMD began trading on the TSX Venture exchange in June and has already risen around 300% since then, and if you go back to its time on the Canadian Securities Exchange, those returns are even higher. CloudMD allows patients to easily connect to doctors through a computer, tablet, or mobile phone. The company has more than 100,000 patients across all of its platforms and, like Well Health, is seeing its numbers spike amid the pandemic.

In its most recent earnings results, CloudMD reported $2.8 million in sales, which grew 163% from the prior-year period. And while the company has seen strong organic growth during the period, the bulk of its growth was due to acquisitions. The company estimates that it’ll be generating annual revenue between $16 million and $23 million once all of its acquisitions close.

CloudMD isn’t done wheeling and dealing, either. In September, it announced it would be acquiring 87.5% of Benchmark Systems, a company that automates workflow processes in the healthcare industry. The U.S.-based company’s network spans 800 physicians, 35 states, and 200 clients.

With incredible potential in the healthcare industry, both Well Health and CloudMD continue to show a lot of promise.

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 David Jagielski has no position in any of the stocks mentioned. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Shopify and Shopify.

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