Right now might be one of the best times to identify a great growth stock. Yet, if Motley Fool investors are going to invest in these stocks, they need to find a long-haul stock to invest in. One that’s in the right sector, at the right time, and only going to grow stronger.
That’s why today I’m going to sink my teeth into WELL Health Technologies (TSX:WELL). WELL stock is a solid choice for those wanting in on the stability of the healthcare sector, while also gaining growth from the tech sector. So let’s get into why this is a top growth stock that’s about to blow.
Image source: Getty Images
Building a stronger future on a strong past
The pandemic was difficult for the entire world, yet when it came to tech stocks there was a large opportunity to be made. One of the tech stocks that enjoyed growth at this time was WELL stock, which rallied to the highest price during the height of the COVID-19 pandemic.
While WELL stock deals with digital healthcare products in general, it was the company’s exposure to telehealth that really set investors onto it. The share price climbed from around $2 to over $9 in under a year.
Then, the drop started. Shares of WELL stock fell as investors had a few things on their minds. First, there was the fear of a slowing economy setting a share drop in motion. Then, there was the fear that WELL stock wouldn’t do as well in a post-pandemic-restriction environment.
So, was this the case?
In short, no
WELL stock managed to continue its strong performance even though many believed it would drop during this period. During 2022, the company reported record revenue at $569 million, an 88% increase year over year. It also reported adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $104.6 million for 2022, up 73% compared to the year before.
Much of this earnings power came from organic growth. However, the company also managed to bring on strategic acquisitions. These new businesses have amassed even more revenue so far in 2023, with management now projecting between $690 and $710 million for 2023, with adjusted EBITDA up 10% over 2022. Earnings have already increased significantly from the beginning of the year.
However, this doesn’t include further acquisitions the company might take on. And knowing WELL, they could certainly happen. Especially in a poor economy that leaves the door open for more opportunities.
A climb, then a drop
Despite all this growth, recent earnings led to a drop in WELL shares. This is because earnings fell below analyst estimates for the company. WELL stock went from up 98% in 2023, to falling by 23% in just a few days.
Yet since then, shares have already starting to climb once more. Shares of WELL are now back up 16% since that drop, and only continue to climb. This could mark another turn around for growth investors seeking a stock that’s about to blow.
When it comes to finding a great stock, WELL stock checks a lot of the boxes. It’s in the stable and growing healthcare sector. It provides services to make things easier for this sector. It also provides telehealth in an industry plagued with shortages. And all for a cheaper cost. So honestly, it’s only a matter of time before this stock blows up.
