Investors are looking for a way to make back what they may have lost over the last few months. And I completely understand. But this can lead some to make some risky decisions — ones that could make things worse instead of better.
That’s why right now, it might be a good idea to get into something that everyone needs: healthcare. In this case, there are two healthcare stocks I would look to first and foremost for growth.
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WELL Health
First up, I would certainly consider WELL Health Technologies (TSX: WELL) as a strong option for investors looking at healthcare stocks. This company continues to show exemplary performance, and yet shares are far lower than they should be.
The last bounce it saw was during its most recent earnings report, when shares climbed 11.5% after announcing record results. WELL stock achieved its 20th consecutive quarter or record quarterly revenue. This comes with record patient visits, achieving over 1.22 million, with almost 1.87 million total care interactions. This was 18% growth quarter over quarter.
Yet shares then dropped back again, even amidst a huge rally in the market. Shares are now below the $4 mark, and that could mean there is room for huge growth in the near future. What investors will want to watch for are better margins. For this, analysts believe WELL stock will need to take on low-margin and growth assets. This would include primary care clinics, for example, where setup is simple and growth would come immediately.
For now, WELL stock looks to continue growing and expanding, and pretty soon, the market will catch up.
BHC stock
Another strong option that needs a bigger boost in share price is Bausch Health Companies (TSX: BHC). The company hasn’t really seen much movement since shares jumped up to 13% in a rebound that came after an executive stepped down.
The company’s chief financial officer left for another opportunity, and there were initial fears that the company was going to have even more bad news come its way. After all, when an executive steps down unexpectedly, it’s usually to do with a scandal or other issue. Yet nothing ever really came of it.
So, it seems the selloff came amid uncertainty from BHC stock, as well as the market in general. And since then, shares are still off from 52-week highs. Therefore, now could be a great buying opportunity.
What investors should continue to pay attention to is news about new tests. Usually, this will cause the BHC stock to climb, along with solid earnings—that, along with ongoing litigation about an irritable bowel syndrome medication. Results should come early this year. So, BHC stock is certainly another healthcare stock investors should consider right now.
Bottom line
The market continues to climb up and down, as do these healthcare stocks. But think long term, and you could be in for intense growth from these two companies. Both are setting themselves up for long-term success, with some success in share price already seen. So, get in now and enjoy the ride.
