Three growth stocks are buying opportunities in December 2021. Pick up their shares without delay for their massive return potential. The values of WELL Health Technologies (TSX:WELL), goeasy (TSX:GSY), and Thinkific Labs (TSX:THNC) could be 10 times more soon.
Cementing its industry-leading position
WELL Health Technologies is a strong must-buy. The healthcare stock appears to be undervalued, considering its commanding position in the Medical Care Facilities industry. Management continues to make strategic acquisitions in its quest to help improve Canada’s healthcare system.
The $1.22 billion technology-enabled healthcare company expects healthy organic growth in the quarters ahead. WELL’s growth drivers are its omnichannel patient services and virtual services. In Q3 2021, revenue grew exponentially (711%) versus Q3 2020.
Hamed Shahbazi, WELL’s chairman and CEO, credits the solid financial performance to the growing success of its practitioner-enablement platform and significant contributions from recent acquisitions. The 12-month average price target of market analysts is $11.91. Thus, the current share price of $5.70 could appreciate by 108.9%.
Ever-growing loan portfolio
Alternative lender goeasy has returned 22,598.36% (21.32% CAGR) in 28 years. At $173.79 per share, current investors enjoy an 82.12% year-to-date gain. The $2.86 billion company provides non-prime leasing and lending services. Its easyhome and easyfinancial products are popular with Canadians. The LendCare brand is now part of the goeasy.
In Q3 2021, total loan originations topped $436 million — a new company record. Furthermore, revenue and adjusted net income grew 36% and 48% versus Q3 2020. Other highlights include 81 consecutive quarters of positive net income and 46 straight quarters of same-store sales growth.
For dividend investors, goeasy also pays a 1.43% dividend. The financial stock has been sharing a portion of the company’s profits to shareholders for 17 years. Moreover, this year marks seven consecutive years of dividend increase.
Thinkific Labs went public on April 21, 2021, and raised over $160 million in gross proceeds. The Vancouver-based Software-as-a-Service (SaaS) firm will use the funds to invest in sales and marketing, develop its course-creation platform and strengthen its balance sheet while pursuing future opportunities.
The TSX listing should improve awareness of the Thinkific brand, increase financial flexibility, and facilitate future access to public capital markets. The tech stock hasn’t taken off yet but it should, given the long growth runway. Also, the share price of $8.35 is a good entry point. You can initiate a position it trades at a discount.
Established businesses, regardless of size, can create, market, and sell online learning products through Thinkific’s platform. Although the $647.41 million company is still in the red, revenue and paying customers grew 65% and 43%, respectively, in Q3 2021 versus Q3 2020. Its co-founder and CEO Greg Smith hopes more entrepreneurs will embrace the platform, so the businesses can grow faster.
Growth despite the headwinds
Scouting for growth stocks is a challenge, especially when the market is a bit shaky. Expect volatility, although the businesses have competitive advantages to overcome the headwinds. WELL Health and goeasy continue to flourish amid the pandemic environment. Meanwhile, Thinkific Labs is slowly laying the groundwork for future growth.