WELL Health Technologies (TSX:WELL) has climbed an incredible amount already in 2023, with shares surging 73% year to date as of writing. Yet to be fair, the stock’s still down 6% in the last year alone. But given WELL stock’s ascent so far this year, is it finally time to buy the stock once more?
What happened
The first question is, why now? It’s a good one, considering Canada is still not even in a recession yet. Many of us may even be begging for one to come so we can just get it over with already. Especially when it comes to investing in the stock market.
WELL stock has been one of those anomalies that continues to climb even during this firestorm. Yet recently, the company climbed due to its earnings, in particular. Earnings that, frankly, were more of the same.
WELL stock announced more positive news, with the company reporting record annual revenue of $569.1 million in 2022. This was an 88% increase over the year before. It also achieved record quarterly revenue at $156.5 million, up 35% from the year before.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) also came in at record highs, at $104.6 million, an increase of 73% compared to 2021. And best of all, the company has a “healthy growth outlook” for 2023, expecting between $665 and $685 million for 2023 revenue.
How is this more of the same?
Yet another good question! In the past year, when WELL stock was falling, it continued to report quarter after quarter of, you guessed it, record earnings. And yet shares continued to drop. So, like, why?
The reason is the market in general, of course, and WELL stock’s place in it. This company fell directly alongside two terrible areas of the market it has exposure to. The first was tech stocks. WELL stock offers virtual healthcare, and continues to expand across North America. As tech stocks fell off the face of the earth last year, WELL stock also fell.
Then, there’s the fact it’s a pandemic-related stock. These companies, WELL stock included, all climbed only to fall after restrictions decreased. However, there was no reason to think so poorly of the company.
WELL stock continues, as you can see, to see more and more use of its clinics across the country. Not sure if you’ve been to an emergency room or doctor’s office lately, but it’s still a dire situation. If there are virtual options, this opens up doctors’ time for more serious cases. So, there is too much opportunity for virtual healthcare to depend solely on the pandemic and those restrictions.
Bottom line
To sum up, WELL stock is a strong choice not just for 2023, but far beyond. You can still pick up the company trading at just $4.72 as of writing. That’s about half its all-time highs, which the company continues to climb towards. And given it’s a strong healthcare company with plenty of growth ahead, it’s one I’d pick up in bulk and hold onto tightly. Even after surging over 70% in 2023 alone.
