The S&P/TSX Composite Index was up marginally in mid-morning trading on February 22. When this year started, I’d suggested that Canadian investors should look to the healthcare sector. This space has proven to be one of the most explosive, especially in the face of the devastating COVID-19 pandemic. Today I want to look at four of my favourite healthcare stocks for Canadians to spend their extra cash on. Let’s dive in.
This top healthcare stock has gained momentum over the past year
Andlauer (TSX:AND) is a Vaughan-based supply chain management company that provides a platform of third-party logistics (3PL) and specialized transportation solutions for the Canadian healthcare sector. Shares of this healthcare stock have dropped 15% in 2021 at the time of this writing. However, the stock is still up 39% from the prior year.
Investors can expect to see the company’s fourth quarter and full year 2020 results on February 25. In Q3 2020, revenue rose 7% from the prior year to $75.8 million. EBITDA rose 13% from the prior year to $20.2 million. Meanwhile, net income increased 10.7% to $8.6 million.
This company is on track for strong revenue growth and boasts a solid balance sheet. The supply chains management technology space is also growing fast. This healthcare stock is well worth a buy today.
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The rise of telehealth has powered this top TSX stock
WELL Health (TSX:WELL) is a Vancouver-based company that owns and operates a portfolio of primary healthcare facilities. The healthcare stock has climbed over 330% year over year. In early February, I’d discussed WELL Health’s spike after it announced its acquisition of CRH Medical. Shares of WELL Health have increased 7.2% in 2021 so far.
This new acquisition will enable a promising expansion into the U.S. market. WELL Health anticipates that this will have a strong impact on revenue and EBITDA growth. Investors can expect to see its final batch of 2020 results in the weeks ahead.
A medical technology company well worth holding
Profound Medical (TSX:PRN) operates as a medical technology company that develops magnetic resonance guided ablation procedures for the treatment of various ailments in Canada, Germany, and Finland. Shares of this healthcare stock have climbed over 40% year-over-year as of late morning trading on February 22. The company will release its fourth quarter and full year 2020 results on March 2.
In Q3 2020, Profound delivered revenue growth of 337% to $2.98 million. However, the company’s net loss expanded to $8.1 million or $0.43 per share, compared to $6.2 million or $0.57 per share in the prior year. Expenditures for R&D rose to $4.7 million over $3.4 million in the previous year.
One more healthcare stock that has thrived during the pandemic
VieMed Healthcare (TSX:VMD)(NASDAQ:VMD) is the final healthcare stock investors should look to snag today. Its shares were down just 3.9% in early afternoon trading on February 22. However, the stock is still up over 30% in 2021 so far.
This company provides in-home durable medical equipment and health care solutions to patients in the United States. Its business has thrived in the face of the pandemic. In Q3 2020, VieMed delivered net revenue growth of 22% to $24.9 million. Investors can expect to see its final batch of results in early March. This healthcare stock possesses a favourable price-to-earnings ratio of 15.
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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 Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Andlauer Healthcare Group Inc. and Viemed Healthcare Inc.