Well Health Stock Is Down 58% From its Highs – Time to Buy?

Well Health stock has been hit, but the company remains on a path of record-breaking revenues as it approaches positive earnings territory.

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It’s upsetting to see a stock fall from glory, as Well Health Technologies Corp. (TSX:WELL) stock has done. Down 58% from 2021 highs, Well Health stock got caught up in all of the excitement back in 2021. Today, the stock has given back a lot of the gains and has settled below $4.

This can be a great opportunity to invest in this growth stock, but is now a good time to buy Well Health stock?

Well Health stock falters but the business keeps going strong

Let’s take a step back for a moment and look at the bigger picture – the longer-term picture, which for Well Health is the last five years. Five years ago, Well Health stock was trading at a mere $0.56. Today, it’s trading at $3.84, a full 586% higher.

Five years ago, Well Health reported revenue of $10.6 million. In 2022, revenue totalled $569 million. In fact, in the first nine months of 2023, revenue totalled $544.8 million, and the company is well along the way to achieving annual revenue of $1 billion in two years. This growth has been achieved through acquisitions but also through organic growth. And today, the company is finally on the cusp of reporting positive earnings.

Well Health to report positive earnings in Q4 2023

Back in January, Well Health management gave investors an update. In this update, the company affirmed that they will report record revenues once again. But this time, earnings per share will be positive. This is a milestone for the company, and one that I don’t think will go unnoticed by investors. It is, in fact, one of the things that has been keeping Well Health stock down.

So, if we look at analyst estimates for Well Health, we can see a couple of things worth mentioning. Firstly, Well Health is expected to report positive earnings for the full year 2024, after many years of net losses. Secondly, analyst estimates, while pretty wide, are on the rise. For example, the consensus EPS estimate for 2025 is now $0.07, up from the prior estimate that was calling for a net loss of $0.02 per share.

All of this is positive for Well Health stock, and should act as a catalyst to get the shares trading higher. Investors just have to become aware of it. The company will be reporting its Q4 fiscal 2024 results later this month. If the results are as positive as expected, this may prove to be the catalyst to finally get the shares moving higher again.

The bottom line

Well Health is the omnichannel digital health company that’s transforming health care and bringing it into the future, driving efficiencies and better patient care. It’s a new business that has been growing rapidly, which is a reflection of the demand that exists for its technology in the health care system.

While the investment community is a little more cautious these days, I think that Well Health Technologies stock will prove to be an excellent opportunity today.

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 Karen Thomas has a position 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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