Canadian investors have three no-brainer, lucrative choices this month from different sectors. Hammond Power Solutions (TSX:HPS.A), North American Construction Group(TSX:NOA), and WELL Health Technologies (TSX:WELL) are leading the market this quarter with their massive year-to-date gains. You can still buy them, given their unstoppable upward momentum.
Industrial
Industrial stock Hammond Power Solutions (HPS) operates in the Electrical Equipment & Parts industry. At $57.64, the year-to-date gain is a mind-boggling 188.26% versus the TSX’s +5.28% return. Had you invested $5,000 on year-end 2022, your money would be worth $14,410 today. The overall return should be higher to include the 0.76% dividend.
The $686.2 million company manufactures dry-type transformers, power quality products and related magnetics. In Q2 2023, total sales reached a record $172 million, representing a 25.4% increase from Q2 2022. The net income during the same quarter soared 105% year over year to $13.3 million. Notably, the order backlog rose 44.1% from a year ago.
HPS’s chief executive officer (CEO) Bill Hammond said, “The second quarter was noteworthy as we continued to deliver record financial results and experience strong demand from a wide range of end markets, which led to the largest week of bookings in the history of HPS.” He added that the HPS is driving to reach $1 billion in sales by the end of the decade.
Market analysts are bullish and recommend a buy rating. Their 12-month high price target is $75, with a return potential of 30.1%.
Energy
North American Construction Group, or NACG, belongs to the energy sector but operates in the oil & gas equipment & services industry. The $878.36 million company provides heavy civil construction and mining services to customers in Canada, the U.S., and Australia.
The business thrives, as evidenced by the glowing financial results this year. In the first half of 2023, revenue and net income jumped 26.5% and 61.9% year over year to $436.2 million and $34.1 million. Its president and CEO Joseph Lambert said the second quarter is always the most difficult, yet the revenue ($193.6 million) and net income ($12.3 million) in Q2 2023 were historical highs for NACG.
NACG plans to diversify some more, form strategic partnerships, and invest in Indigenous joint ventures. At $33.26 per share, investors are up 85.48% year to date and partake in the modest 1.24% dividend.
Healthcare
Healthcare is the second top-performing sector (+21.52%) thus far in 2023 after technology (+32.77%). However, WELL Health outperforms both with its 51.8% year-to-date gain. Market analysts forecast the stock price of $4.31 to climb 88.9% on average to $8.14 in one year.
The $1.01 billion company boasts the most comprehensive healthcare and digital platform in Canada. In the U.S., it provides omnichannel healthcare services and solutions in specialized markets. In Q2 2023, revenue reached $170.9 million, WELL’s 18th consecutive quarter of record revenue performance.
WELL’s net loss for the quarter was $2 million compared to the $10.6 million losses in Q2 2022. For the full-year 2023, management expects revenue to be between $740 and $760 million. Among the key priorities are the development of new products and investments in artificial intelligence technologies.
Potential multi-baggers
HPS, NACG, and WELL Health are no-brainer buys this quarter. Each stock is a potential multi-bagger that could deliver stout returns.
