The Motley Fool

3 Stocks to Watch in February 2021

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Finding great growth companies can be hard to do. Fortunately, we at the Motley Fool are here to help bring excellent companies to your attention. One way to find tomorrow’s greatest stock is to look at industries that help people enrich their everyday lives. In this article, I will discuss three companies that do just that within their respective industries. These three companies are stocks to watch in February 2021.

Human resource technology needs a disruptor

One of the unsung heroes within the corporate structure is certainly the human resources department. Overseeing many tasks that help keep companies running, human resource teams ensure areas like employee management, benefits, and pay are operating smoothly. Unfortunately, not many companies have helped push this area forward. Technology is still rather behind compared to other departments (e.g., accounting). Enter Morneau Shepell (TSX:MSI).

This company provides human resource services through a cloud-based platform. The company states that its mission is to “[provide] world-class solutions to our clients to support the mental, physical, social and financial wellbeing of their people.” Morneau Shepell offers services across six verticals, with a large focus on health and wellbeing.

Since 2008, Morneau Shepell stock has gained 475%. This represents an average return of 15% over that period. Compared to an average total return of 2.37% by the TSX, Morneau Shepell has performed admirably. The company is seeking continued growth in the coming years.

Another company that seeks to enrich employee experiences

A second stock that should remain on your watchlist this month is Docebo (TSX:DCBO)(NASDAQ:DCBO). This is a company that I have featured on the Motley Fool since June. Docebo provides a cloud-based, AI-powered e-learning platform for enterprises. In a time when companies are increasingly moving towards remote operations, Docebo should see a big boost in adoption.

As of this writing, Docebo is trading about 14% from its all-time highs, suggesting today may be an excellent buying opportunity. The company has done well in the past year to attract new investors, including an IPO on the Nasdaq and a multi-year partnership with Amazon. This has resulted in its stock skyrocketing to more than a 400% gain since its IPO. However, if Docebo reaches its true potential, this is still the start of the story.

Telehealth will change the medical services industry as we know it

Finally, I can’t write an article about enriching people’s everyday lives without talking about the healthcare sector. WELL Health Technologies (TSX:WELL) is a leading operator within the Canadian telehealth industry. It operates a portfolio of primary care clinics and offers a number of digital services.

WELL Health was a standout on the TSXV before graduating to the TSX in January 2020. Led by CEO Hamed Shahbazi, WELL Health has seen more than 7,000% gains since its IPO. Finally expanding into the United States in 2020, WELL Health looks like it is ready to take on the world. This stock is still in its early growth stages. It has a market cap of $1.3 billion, and investors could see incredible returns over the next few years.

Foolish takeaway

Finding great companies to hold for the long term may be difficult for some. However, looking at companies that enrich our everyday lives may be an excellent place to start. If Morneau Shepell, Docebo, and WELL Health Technologies are not on your watchlist yet, it would be a great time to consider adding them.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Jed Lloren owns shares of Docebo Inc. David Gardner owns shares of Amazon. The Motley Fool owns shares of and recommends Amazon. The Motley Fool recommends MORNEAU SHEPELL INC and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon.

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