Growth investing took a backseat in 2022, as rising interest rates are headwinds for growth-oriented companies, and investors fear lower future earnings and overvaluation. However, the landscape is changing this year, with many stocks resurging.
WELL Health Technologies (TSX:WELL) is soaring tremendously with its 102.46% year-to-date gain. Ag Growth International (TSX:AFN), or AGI, and Wajax (TSX:WJX) are holding ground and beating the broader market (+5.28%), as evidenced by the 37.01% and 27.28% positive returns thus far in 2023. These small-cap stocks with massive upside potential could skyrocket your wealth.
Health is wealth
WELL Health is the market leader in digital health owing to its best-in-class technology and services. The $1.35 billion multichannel digital health technology company owns and operates primary healthcare facilities in North America. In Canada, it’s the largest operator of outpatient health clinics. WELL also provides Electronic Medical Records (EMR) services to clinics and doctors.
The current share price is $5.75, and market analysts forecast a return potential between 39.1% ($8) and 134.7% ($13.50) in 12 months. Had you invested $5,001.24 (1,761 shares) at year-end 2022, your money would be worth $10,125.75 today. WELL’s total return in three years is 161.36%, which translates to a compound annual growth rate (CAGR) of 161.36%.
WELL has built a powerful network by acquiring physical and digital healthcare assets. Management expects these assets to generate significant positive cash flows. The competitive advantage is its comprehensive end-to-end healthcare system, including a practitioner-enabled platform.
Global food infrastructure
AGI supplies the world’s food infrastructure via five platforms (Seed, Fertilizer, Grain, Feed, and Food). The $1.12 billion company operates on six continents and provides full solutions and systems (planning, engineering, and manufacturing) for farm and commercial applications. Besides Canada and the U.S., it has manufacturing facilities in Brazil, France, India, and Italy.
At $59.24 per share, current investors partake in the modest 1.01% dividend. The trailing one-year price return is 54.74%. Market analysts recommend a buy rating with a 12-month average price target of $72.20 (+21.8%).
AGI’s resilient and diversified (farm and commercial) business model is vital to the entire supply chain because it increases food security. Last year, the company marked three consecutive years of record sales and management expects the strong momentum to carry over in 2023.
Solid growth
Wajax should be on your buy list following the impressive financial results in the first quarter of 2023. The $531.9 million industrial products and services provider boasts an integrated distribution system that’s suitable for diverse sectors of the Canadian economy.
In the three months that ended March 31, 2023, revenue and net earnings rose 17.4% and 8.8% to $516.1 million and $17.5 million versus the first quarter of 2022. Wajax’s president and chief executive officer Iggy Domagalski credited the strong customer demand across all regions and continued positive momentum for the improved top-line performance.
At $24.77 per share, the stock pays a juicy 5.43% dividend. Wajax has rewarded investors with a 258.4% return in three years (52.98% CAGR).
Boost your wealth
The solid performances of WELL Health, AGI, and Wajax make them the top investment prospects for growth investors in 2023. If you need to boost your wealth, these high-growth stocks could do it.
