WELL Health Technologies (TSX:WELL) has had a wild ride since the beginning of the pandemic. After shares soared to all-time highs, WELL Health stock is now back down near 52-week lows. Yet there has been some momentum early this week that could have some Motley Fool investors interested. And frankly, they should be.
Not just a trend
WELL Health stock may provide the best deal on the TSX today. The company expanded rapidly during the beginning of the pandemic, offering virtual health care at a rapid pace. And it was sorely needed. Patients could now see their doctors for anything from mental health issues to prescription renewals. All from the comfort of their home.
But it then moved far beyond that. WELL Health stock made even more partnerships to allow for those in rural communities to access health care. Furthermore, it proved to be time and cost efficient, showing this new trend wasn’t going to be a trend after all.
Yet then, WELL Health stock started to fall. This came as Motley Fool investors wondered if the pandemic was coming to an end. Furthermore, an anonymous short-seller report came out against WELL Health, but was quickly met by a rebuttal from the source two weeks later. Even when the Omicron variant reared its ugly head, investors still weren’t convinced.
But here’s why you should be.
A deal is a deal
WELL Health stock continues to make deals both on this side of and south of the border. After becoming the largest outpatient clinic in Canada, it’s now expanded into the U.S. In 2021, it acquired U.S.-based CRH Medical, ExecHealth, and Intrahealth Systems. Some sources now claim the company will soon acquire Canadian MyHeath Centres. This would add another 48 clinics to the network.
And there’s a reason WELL Health stock continues to be the top choice. It’s not just that it offers telemedicine. It also offers electronic medical records, cybersecurity, billing options, and even applications for client use. The company is only set to grow even if the pandemic come to an end, which some suggest may never truly happen.
The company also gave a strong update for investors recently. WELL Health expects record performance for the fourth quarter, with a revenue run-rate of above $450 million, beating guidance. Further, its CRH acquisition should deliver US$43 million in free cash flow for full-year 2021. U.S. growth is expected to continue at a rapid pace for 2022 and beyond. This all led to management activating its buyback program.
Buy now for big gains
So now that leaves WELL Health stock up 9% on January 31, as of writing, but still a great deal. While it remains in neutral territory, its expansion through acquisition leaves room for incredible growth in earnings and revenue. Especially for the patient investor.
Shares of WELL Health stock trade at $4.50 as of writing. Yet analysts give it a consensus target price of about $11.20. That’s a potential upside of about 150% as of writing, even after recent gains!
WELL Health is a solid buy right now, based on future outlook and current performance. Yet it remains on sale at dramatic prices. As the tech crash rebounds and Motley Fool investors realize virtual health care is here to stay, it’s clear that WELL Health may be one of the best buys you make in 2022 for your long-term portfolio. By the end of this year, a $20,000 investment today could be worth $49,778 to reach that consensus target price.
