2 Canadian Stocks I’m Buying Lots of This Year

I’m looking to snatch up exciting Canadian stocks like VieMed Healthcare Inc. (TSX:VMD) throughout 2023.

| More on:
Target. Stand out from the crowd

Image source: Getty Images

The S&P/TSX Composite Index rose 100 points on Thursday, January 26. Some of the top-performing sectors included energy, financials, information technology, and health care. Today, I want to zero in on two Canadian stocks in the health care and industrials spaces. I’m looking to stack shares of both equities throughout 2023. In this article, I will explain why. Let’s jump in.

This Canadian stock is still worth buying after the COVID-19 pandemic

VieMed Healthcare (TSX:VMD) is a Louisiana-based company that provides in-home durable medical equipment (DME) and post-acute respiratory healthcare services to patients in the United States. Shares of this healthcare stock have soared 95% year over year as of close on January 26. Moreover, the stock has jumped 6.6% to kick off the new year.

This Canadian stock stole headlines during the COVID-19 pandemic, and with good reason. It offered its services to healthcare facilities that were in desperate need of ventilators. The pandemic also presented an opportunity for VieMed to boost its revenue in the near term. That means it has seen its earnings dip as the pandemic has waned, but it still boasts a bright future.

Last year, Precedence Research estimated that the global home medical equipment market was valued at US$35.7 billion in 2021. The North American region accounted for more than 40% of the market share in that year. This report projects that the market will achieve revenue of US$62.1 billion in 2030. That would represent a compound annual growth rate (CAGR) of 6.3% over the forecast period.

The company unveiled its third-quarter (Q3) fiscal 2022 earnings on November 1. VieMed delivered record net revenues in its core business of $35.8 million — up 28% from the prior year. Meanwhile, its ventilator patient count increased 11% to 9,127. That was the highest growth rate experienced since the beginning of the COVID-19 pandemic.

Shares of this Canadian stock are trading in favourable value territory compared to its industry peers. Meanwhile, it is on track for strong earnings growth going forward.

Don’t sleep on this Canadian stock that can benefit from higher steel prices in 2023

Stelco Holdings (TSX:STLC) is a Hamilton-based company that is engaged in the production and sale of steel products in Canada, the United States, and around the world. Its shares have climbed 46% year over year as of close on January 26. This Canadian stock has jumped 17% so far in the first month of 2023. Investors who want further details on its recent performance can play with the interactive price chart below.

Investors can expect to see Stelco’s Q4 and full-year fiscal 2022 earnings in the second half of February. In Q3 2022, the company saw revenue dip 38% year over year to $846 million. Meanwhile, it reported adjusted net income of $163 million or adjusted net income per share of $2.40 — down 74% from the third quarter of fiscal 2021.

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. This measure aims to give a more accurate picture of a company’s profitability. Stelco achieved its seventh straight quarter with the highest adjusted EBITDA margin of any United States or Canadian reporting steelmaker.

This Canadian stock currently possesses a very attractive price-to-earnings ratio of 2.6. Moreover, Stelco offers a quarterly dividend of $0.42 per share. That represents a 3.2% yield. Steel prices have ticked up in the first weeks of 2023, but demand remains inconsistent. Regardless, I’m looking to snatch up Stelco in late January.

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 Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Viemed Healthcare. The Motley Fool has a disclosure policy.

More on Investing

edit Jars of marijuana
Cannabis Stocks

Is Tilray Stock a Buy in the New Bullish Market?

Canadian cannabis producer Tilray has underperformed the broader markets in the last five years due to its weak fundamentals.

Read more »

Woman has an idea

3 No-Brainer Stocks to Buy With $200 Right Now

These three stocks are no-brainer buys, given their solid underlying businesses and healthy growth prospects.

Read more »


2 Stocks I’m Loading Up on in 2024

Alimentation Couche-Tard (TSX:ATD) and another stock that are getting too cheap after their latest corrections.

Read more »

grow money, wealth build
Dividend Stocks

1 Top Dividend Stock That Can Handle Any Kind of Market (Even Corrections)

While most dividend aristocrats can maintain their payouts during weak markets, very few can maintain a healthy valuation or bounce…

Read more »

Red siren flashing
Dividend Stocks

Income Alert: These Stocks Just Raised Their Dividends

Three established dividend-payers from different sectors are compelling investment opportunities for income-focused investors.

Read more »

online shopping
Tech Stocks

1 Hidden Catalyst That Could Ignite Shopify Stock

Here's why Shopify (TSX:SHOP) ought to remain a top growth stock investors continue to focus on for the long haul.

Read more »

Oil pumps against sunset
Energy Stocks

Is it Too Late to Buy Enbridge Stock?

Besides its juicy and sustainable dividends, Enbridge’s improving long-term growth prospects make it a reliable stock to hold for the…

Read more »

Man considering whether to sell or buy
Tech Stocks

WELL Stock: Buy, Sell, or Hold?

WELL stock has a lot of upside as the company is likely to continue to grow, posting positive earnings in…

Read more »