Forget Air Canada (TSX:AC): 1 Canadian Growth Stock That Could Double

CloudMD Software & Services could be a far safer investment for growth-seeking investors than troubled Air Canada stock.

| More on:
Growth from coins

Image source: Getty Images

Investors consider Air Canada (TSX:AC) an ideal rebound play for 2021. After all, imagine how much money Canada’s largest airline will make when international travel resumes. The anticipation of air travel returning to normalcy began towards the end of October 2020, when the vaccines were first announced.

Much of the rebound that Air Canada could have seen has already been cashed in. At writing, the stock is up 75% from its valuation in October 2020. There is not much upside left for the stock, even if travel resumes as strongly as investors might want it to.

The government’s bailout deal for Air Canada was expected to offer the battered airline stock a massive boost. However, the $5.9 billion bailout package managed to underwhelm. Air Canada might not be as strong a recovery play as investors might have wanted it to be.

Growth stocks are still available

The recovery play for Air Canada may no longer seem as attractive as it could have been. Investors who remain hungry for growth stocks may want to consider other assets that promise better growth. You can find excellent stocks that are ready to outperform the broader market, even in the current frothy market conditions.

The key is to find a strong company with massive potential trading at low share prices in a momentum-based industry. I will discuss one such stock that could be worth having on your radar for this purpose.


The telehealth industry saw a massive boost during the pandemic. Rather than visiting the clinic, people worldwide became increasingly used to calling telehealth centres to seek appointments and treatment. Companies like CloudMD Software & Services (TSXV:DOC) saw share prices soar. CloudMD continues to carry forward its positive momentum. At writing, the stock is up by 154% in the last 12 months, and it has all the potential to continue rising.

The pandemic accelerated the adoption of telehealth and telemedicine services. Telehealth has become a convenient solution for patients and healthcare providers. It is unlikely for the post-pandemic world to return to in-person-only visits. Telehealth companies like CloudMD will continue helping people, and healthcare providers save time and money.

Canadians can have their ailments treated quickly and efficiently, and most patients will see help through every type of medical field. Despite its meteoric rise, CloudMD stock is still trading for below $2 per share. Even a small stake in the stock could make it a stock that could double your investment.

Foolish takeaway

Growth-seeking investors do not need to lose hope, even if Air Canada does not post the kind of returns they might have been expecting from its recovery as international travel resumes after the pandemic. Companies like CloudMD Software offer investors an excellent opportunity to see their wealth grow. CloudMD could be a worthwhile addition to your portfolio to see massive returns.

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 Adam Othman has no position in any of the stocks mentioned.

More on Tech Stocks

Group of people network together with connected devices
Tech Stocks

This Is the Best Overlooked AI Stock on the TSX Today

This AI stock has been a top growing in the last while, but remains overlooked despite its strong portfolio and…

Read more »

Different industries to invest in
Tech Stocks

Why This AI Stock Surged 363% in Just 1 Year

This AI stock has surged this year by almost 400%! And yet this could only be the beginning for this…

Read more »

Online shopping
Tech Stocks

2 Growth Stocks Bay Street Might Be Sleeping On, but I’m Not

I'm not sleeping on Taiwan Semiconductor (NYSE:TSM) stock. Shopify (TSX:SHOP) is a Canadian stock with similar growth rates.

Read more »

Various Canadian dollars in gray pants pocket
Tech Stocks

3 No-Brainer Stocks to Buy With $50 Right Now

Looking for high growth? Dividends? How about just a huge portfolio? We've got it all with these three top stocks…

Read more »

A chip in a circuit board says "AI"
Tech Stocks

Canada Is About to Spend $2 Billion on Homegrown AI: 2 Stocks to Reap the Benefits

Here's how Canada intends to invest $2.4 billion in artificial intelligence. Nvidia (NSADQ:NVDA) and IBM (NYSE:IBM) stock could benefit.

Read more »

potted green plant grows up in arrow shape
Tech Stocks

A Growth Stock I’d Buy Over Lightspeed in 2024

Lightspeed is a tech stock that is growing at an enviable pace. But this TSX growth stock is a much…

Read more »

A colourful firework display
Tech Stocks

Prediction: This Stock Is the TSX’s Next Growth Star

One outperforming tech stock is rising fast and likely to be TSX’s next growth star.

Read more »

question marks written reminders tickets
Tech Stocks

Nvidia’s Historic Stock Split: Will Investors See Bigger Gains?

Nvidia's (NASDAQ:NVDA) record 10:1 stock split entices many investors in several important ways. But some myths aren't technically correct.

Read more »