Tech top stocks have had an incredible run this year. In fact, e-commerce and software companies have created more value for shareholders than any other sector in 2020. However, as we enter the New Year 2021, investors must turn their attention to future winners.
Here are the top stocks priced under $10 that I believe could double in the year ahead.
CloudMD
The health tech and telehealth sectors are a prime focus in the years ahead. This crisis has made it clear that patients need better (perhaps virtual) access to medical attention. Meanwhile, the medical industry needs to consolidate and adopt new technologies at a blistering pace.
Medical software maker CloudMD (TSXV: DOC) is at the forefront of this revolution. The company’s cloud-based platform currently serves 376 clinics, 3,000 licensed practitioners, and close to three million registered patients. This year, it acquired a network of medical clinics to manage them in-house.
This expands CloudMD’s potential market to billions of dollars. Telehealth alone is estimated to be worth $55 billion by 2025. Meanwhile, the firm is worth $340 million and is trading at just under 18.9 times sales per share — a better valuation than the next top stock on our list.
WELL Health
Just like CloudMD, WELL Health Technologies (TSX: WELL) operates a network of clinics, provides medical data services for practitioners and offers a telehealth clinic. However, WELL Health has also entered the U.S. market this year which vastly expands its market potential.
WELL Health has been executing on its acquisition-driven growth strategy for years. Just yesterday, it announced a minority investment in Simpill Health Group Inc. (“Pillway”), a full-service digital pharmacy. The investment gives WELL Health exposure to the rapidly expanding online pharmacy market.
It also demonstrates the team’s ambitions. WELL Health could become an end-to-end healthcare technology conglomerate within a few years. A unified platform for doctors to manage medical data, patients to seek telehealth appointments and buy pharmaceuticals could be incredibly lucrative.
WELL Health is currently worth just over $1 billion. Meanwhile, the opportunity to digitize healthcare across North America is worth trillions. That’s what makes it likely that WELL Health stock could double within the next 12 months. In fact, it’s already quadrupled year-to-date.
Drone Delivery Canada
Unlike the two other top stocks on this list, Drone Delivery Canada (TSXV: FLT) is far smaller and far more speculative. The company offers commercial drone delivery services and a logistics management software solution. It’s an intriguing market that’s caught the attention of tech titan Jeff Bezos in recent years.
However, the industry is still far too nascent. Drone Delivery Canada has signed letters of intent and commenced flight trials with major institutions; But the company hasn’t struck a major breakthrough yet. Meanwhile, the valuation has already surged to $163 million.
Investors are excited about this stock. If it lands a major client and generates revenue next year, the concept could be proven commercially viable. The stock could fly much higher, perhaps even double. But for now, this is a speculative bet that’s only appropriate for investors with an appetite for risk.
