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.

Adam Othman

Adam is a value investor who is always on the hunt for fantastic undervalued companies that he can share with Motley Fool readers. He follows Warren Buffett and Charlie Munger's investment advice and has completed the Canadian Securities Course. When he's not investing, Adam can usually be found traveling or skiing.

Published May 24, 2021 11:00 am EDT

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.

Telehealth

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.