A Bull Market Could Be Here: 3 Reasons to Buy WELL Stock

WELL stock (TSX:WELL) may have crashed since the lifting of pandemic restrictions, but after 18 record quarters, it’s time to get back in.

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The TSX today could be on the verge of entering a bull market. And if so, there are a few stocks that could be due for a huge recovery.

First off, however, what exactly constitutes a bull market? To identify this, a bull market is a period of time when stock market prices are rising higher and higher on the back of positive investor sentiment. It’s usually characterized by an increase in the demand for securities, with a rise of over 20% or more in the broad market index – in this case, a 20% increase in the TSX over at least the last two months. Some analysts consider it a bull market with as low as 10% growth, however.

So are we in a bull market? No. But one could certainly be on the way. The TSX today is up 5% since June of this year. This rise comes as inflation seems to be steadying, and interest rates could see some of their last increases. Which is why if a bull market is on the way, here are three reasons you should consider picking up WELL Health stock (TSX:WELL).

Consistent performance, with inconsistent returns

WELL stock gained traction during the pandemic from a combination of being a top tech stock, while also providing virtual healthcare to its clients around the world. The company expanded rapidly, acquiring other virtual healthcare businesses and soon becoming the largest outpatient clinic in Canada.

It then set its sights on the United States, where the company expanded its operations further. Yet it still has an entire globe to conquer, with the virtual healthcare arena a pretty much endless opportunity. Especially when taking into consideration all the differing fields of medical needs.

Yet after shares hit all-time highs, the company slouched back. The returns that investors had grown used to came crashing down, as they thought perhaps the company wouldn’t be able to continue hitting its record levels. They couldn’t be more wrong.

Enough cash for more growth

WELL stock continued to see growth thanks to the lucrative and simple solution of growth through acquisitions. While the company continues to see large increases in organic use as well, it’s this method of acquisitions that has brought record revenue increases.

In fact, during its most recent report announcement, WELL reported its 18th consecutive quarter of record quarterly revenues. The company achieved over one million total patient visits, with almost 1.5 million total patient interactions in the second quarter.

These patient volumes also allowed the company to report record revenues for the second quarter of 2023. This included both in Canada and through its United States operations.

Analysts believe the stock could double

Right now, shares of WELL stock remain at about $4.30 as of writing. Yet the consensus price target set by analysts is about about $8.30. That means shares could almost double in the next year, if analysts are correct.

In a bull market, investors will likely look for the top tech stocks that have been pushed aside after the tech crash, those that have continued to perform well, but have yet to make a solid recovery. These stocks should certainly include a company such as WELL stock.

So with shares up 12% in the last year, but 17% in the last three months, now is certainly a great time to hop back on WELL stock. Then, look forward to the arrival of a bull market.

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.

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