WELL Health Stock Is Up 70% This Year: Is It a Buy Today?

Sure, WELL stock might be up 70%, but why? The answer will tell you why you should pick up this stock and hold on tight.

| More on:
tech and analysis

Image source: Getty Images

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.

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 Amy Legate-Wolfe has positions in Well Health Technologies. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Tech Stocks

Hands shaking over a business deal
Tech Stocks

Meet the Growth Stock I Can’t Stop Buying This Year

Topicus stock (TSXV:TOI) has been a top growth stock this year, with strong finances, a stable acquisition strategy, and more…

Read more »

grow dividends
Tech Stocks

Celestica Stock Is up 44% Since Earnings: What Investors Need to Know

Celestica continues to benefit from strong demand and production efficiencies, yet the stock remains undervalued.

Read more »

healthcare pharma
Tech Stocks

What’s Going on With WELL Health Stock?

WELL stock (TSX:WELL) made strong moves once again, with record earnings and even higher guidance for 2024.

Read more »

A shopper makes purchases from an online store.
Tech Stocks

3 Reasons to Buy Shopify Stock Right Now

Based on these three top reasons, Shopify (TSX:SHOP) stock appears undervalued to buy right now.

Read more »

stock research, analyze data
Tech Stocks

What’s Going on With Lightspeed Stock?

Lightspeed (TSX:LSPD) stock has been climbing once more but is still far from its three-digit share price. So, is it…

Read more »

Target. Stand out from the crowd
Tech Stocks

Missed Out on Nvidia Stock (Again)? Buy Descartes Instead

Nvidia (NASDAQ:NVDA) stock soared yet again after earnings, passing the four-digit mark. But with shares so high, maybe this option…

Read more »

Group of people network together with connected devices
Tech Stocks

This Is the Best Overlooked AI Stock on the TSX Today

This AI stock has been a top growing in the last while, but remains overlooked despite its strong portfolio and…

Read more »

Different industries to invest in
Tech Stocks

Why This AI Stock Surged 363% in Just 1 Year

This AI stock has surged this year by almost 400%! And yet this could only be the beginning for this…

Read more »