3 Things About WELL Health Stock Every Smart Investor Knows

WELL Health (TSX:WELL) stock has seen shares climb 25% in the last year, but even more is likely in the near future.

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WELL Health Technologies (TSX:WELL) is starting to come back into the spotlight. Not that its share price would show it. The virtual healthcare provider continues to see record growth quarter after quarter. Yet shares still trade in value territory. So, that’s why today we’re going to focus on three things that every WELL Health stock investor should know.

Acquisition strength

One of the greatest methods of creating growth is through acquisitions. Special purpose acquisition companies have to be near perfect when it comes to identifying valuable companies that would be a great fit for their company. And that’s not easy. What’s more, it’s costly.

And yet, WELL Health stock has proven time and again that it’s made some of the best investments out there. The company started out as an electronic filing service for healthcare workers. Now, it’s expanded, adding in virtual healthcare and making it the largest outpatient clinic in the country.

And it hasn’t slowed down. WELL Health stock is now throughout Canada and the United States, and that could just be the beginning. The company has generated incredible growth from its current projects organically and is using that to expand through acquisitions. Most recently, this included OceanMD in British Columbia, with the stock continuing to seek out more for its business development pipeline.

Keeping costs down

Part of the benefit of making everything online and in a cloud is that it will eventually bring costs down. And that’s an easy sell for WELL Health stock, and it’s why the company continues to see and improving cash flow situation.

The stock has gone through its own cost-saving initiatives as well, though. There remains a focus on improving cost efficiency and operating cash flow. WELL Health stock has done multiple things to achieve this. They include tech enablement, robotic process automation, and artificial intelligence (AI).

In fact, this last point also bleeds over into the next opportunity for WELL Health stock. AI provides efficiencies not only for this company but also for clients of WELL. AI will be used to do everything from taking notes to filling out forms — all while still having a clear focus on cybersecurity in this sector.

2024 will be bigger

WELL Health stock may have had a good year, seeing shares climb 25% in the last year alone. But that’s nothing compared to all-time highs, which is what management is now aiming for. And this will be supported by even more growth in the near future.

In fact, the company’s chief executive officer stated that growth is not just limited to buying clinics or developing sites. Instead, they are recruiting entire clinics, full rosters of patients, and absorbing clinics in the process. Patient providers now trust WELL to protect their interests and their patients.

This means WELL Health stock will be sought out more and more rather than seeking out opportunities. And that shift could mean big things in the near and long term for this company. So, with record production quarter after quarter, don’t think that this will suddenly stop. In fact, WELL stock could see this continue for the foreseeable future.

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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