Many industries are managing to do well even during this pandemic. Indeed, e-commerce stocks, technology stocks, shipping stocks have all managed to do well even while other companies are floundering.
But there’s a word of warning that you must consider before investing in these companies. The market is rebounding as a whole, and it’s unlikely we will see quite the drop we did back in March. However, it is likely we will see further crashes in the future as the pandemic continues. So, be aware of those stocks that can see you through the next crashes, and well into the future.
That’s why healthcare stocks are perfect. Healthcare needed an overhaul, pretty much across the board and around the world. Because of the pandemic, it’s gotten that investment. It’s likely that this investment will continue for years to come, to prevent another pandemic from happening.
But not all healthcare stocks are alike, so this is why today I would consider NorthWest Healthcare Properties REIT (TSX:NWH.UN) and CloudMD Software & Services Ltd. (TSXV:DOC) as your top choices.
NorthWest is one of the only REITs that actually saw a huge jump in revenue during the pandemic. At the start back in March, revenue rose by about 1% year over year. As of the latest quarter, that revenue jumped to 10.8% year over year! Meanwhile, occupancy also rose to an incredible 99%.
NorthWest is a solid long-term investment not just during the pandemic but after, and that’s because of its diverse healthcare portfolio. Not only does it have properties around the world, but every kind of healthcare property, from office space to hospitals. So you get it all with Northwest.
An investment in NorthWest during the crash would have made you returns of 80% as of writing! While also receiving a solid dividend yield of 6.58% at this moment in time.
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NorthWest deals with the present, but CloudMD has an eye on the future. The company offers virtual physicians and telehealth for Canadians across the country. Its been acquiring all businesses that fall under this healthcare umbrella — just residents and family doctors and nurses, but physiotherapists, mental health specialists, and more. So you can now receive practically all your needs, while staying comfortable at home, and most importantly: safe!
People are really starting to see the potential of CloudMD in the last year. The company has seen a 163% growth in revenue year over year during the latest quarter, with its gross margin increasing by 42%! Shares are up almost 600% in just a year, and likely to continue growing even more. Yet shares are still at an incredible price of around $2.30 per share as of writing.
Healthcare stocks right now are one of the best options out there. Many are trying to innovate right now, coming up with new ways to keep Canadians healthy and safe. NorthWest is a solid option for both dividends and taking advantage of healthcare property investment.
Meanwhile, CloudMD will bring in huge returns for the next few years, and likely far beyond as virtual healthcare takes hold.
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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 Amy Legate-Wolfe owns shares of NORTHWEST HEALTHCARE PPTYS REIT UNITS. The Motley Fool recommends NORTHWEST HEALTHCARE PPTYS REIT UNITS.