No one has successfully timed the stock market, but intuitive investors have the knack of making purchases at the right time. For instance, the healthcare sector is on a slump in that many of its constituents are beaten down.
However, Viemed Healthcare (TSX: VMD)(NASDAQ: VMD) carries a strong buy rating despite the underperformance. Other stocks like Stingray Group (TSX: RAY.A) and Capstone Mining (TSX: CS) deserve their buy ratings too as they haven’t lost steam year in November 2021. If you intend to take positions this week, consider including the three stocks in your priority list.
Emerging growth company
Viemed is down 29.75% year to date and is fast approaching its 52-week low of $6.77. Still, market analysts are bullish on this healthcare stock. Their 12-month average price target is $12.10, which means the current share price of $6.99 could potentially climb 73.13%.
The $281.77 million company is known in the U.S. as a high-level service provider of best-in-class technology and equipment to patients with respiratory diseases. The industry is growing and the demand for programs to treat chronic obstructive pulmonary disease (COPD), chronic respiratory failure, and other neuromuscular diseases is rising.
Viemed is an emerging growth company, notwithstanding the 81% drop in net income after three quarters in 2021 versus the same period in 2020. The global pandemic affected operations but the need for in-home durable medical equipment (DME) and post-acute respiratory healthcare services remains.
Apart from individual patients, Viemed has sales and rental arrangements with DME companies. Expect growth to come from the expansion of existing service areas and foray into new regions. Currently, Viemed’s licensed respiratory therapists (RTs) are serving in 46 states.
Music to the world
Stingray’s TSX performance has been steady for most of 2021. At $7.52 per share. the stock is up +17.72% year-to-date. Based on analysts’ forecasts, the return potential is 17.46% ($8.83). The $534.7 million music, media, and technology company forge solid partnerships to bring music to the world.
Among its prominent clients are Canada’s top five telcos, iTunes, Comcast, and Verizon. On the content and technology side, Stingray’s prominent partners include SONY, Warner Music Group, Universal Music Canada, and Ericsson.
In the nine months ended September 30, 2021, Stingray reported revenue growth of 17% compared to the same period in 2020. Its net income, however, declined 14% year over year. Nonetheless, the numbers are good given the 19.6% increase in cash flow from operating activities to $20.4 million in Q3 2021 versus Q3 2020.
Mind-boggling returns
Capstone Mining is a must-buy for growth investors chasing after explosive returns. At $5.53 per share, the mining stock enjoys a 132.35% year to date. Also, the trailing one-year price return is 205.52%. Moreover, the total return in the last three years is a mind-boggling 777.78% (106.01%).
This $2.26 billion explorer and producer of base metals operates four mining sites (Canada, Chile, Mexico, and the United States). Capstone isn’t a hard sell given that it’s a 2021 TSX30 winner. The third edition of the flagship program ranked this stock number five out of the 30 high-growth stocks. Market analysts recommend a strong buy rating and predict a further price surge of nearly 30% to $7.18.
Budget-friendly
When the opening bell rings this week, don’t miss the chance to pick up the three stocks in focus. All are budget-friendly but the potential gains should be awesome.
