Better Buy in April: Well Health Stock Vs. TC Energy Stock

Although most stocks look appealing during a bullish or recovery phase, you should choose based on your investment needs and risk tolerances.

| More on:

It’s usually a good idea to compare apples to apples and oranges to oranges — i.e., stocks that are the same in several categories like size, industry, sector, target market, etc. However, when your main goal is to leverage a bullish trend, it’s usually a good idea to compare stocks from different sectors and magnitudes to identify the picks that offer you the best chance to capitalize on the positive trend.

An energy giant

TC Energy (TSX:TRP) is one of the best energy stocks you can buy in Canada in April and almost any given month. But the 30% discount the stock is still trading at makes it an attractive buy. This has pushed its yield up to 7.4%, making it one of the most generous aristocrats in the energy sector right now.

However, there are other major appeals of this stock. It’s a pipeline stock, a relatively safer breed within the energy sector.

Also, the bulk of its business is focused on natural gas, making it even more compelling than other pipeline stocks in Canada. Natural gas (because of fewer emissions compared to oil) may have a brighter future than oil-heavy stocks, pipelines, or upstream. The stock is also quite reasonably valued right now.

When it comes to capital-appreciation potential, it was modest at best, even at the prime of its growth, but that’s a virtue of its size and business model.

A healthcare and tech stock

Well Health (TSX:WELL) is a healthcare company that aims to leverage the right technologies to make healthcare more accessible to the masses and healthcare delivery more digitized. The company has a portfolio of facilities and over 3,400 healthcare professionals operating under its umbrella. In addition, the Well Health platform is used by over 34,000 healthcare professionals.

The stock experienced unprecedented growth during the COVID pandemic, and for good reason. Healthcare stocks received a lot of limelight during the pandemic, and as a company that offers virtual healthcare services, it was perfectly positioned to serve a broad market.

It caused the company to grow over 500% in less than a year. Since then, it has been in an extended correction mode, but now that the company is experiencing organic growth in its reach and numbers, there is reason to be optimistic about the stock.

  • We just revealed five stocks as “best buys” this month … join Stock Advisor Canada to find out if TC Energy made the list!

Foolish takeaway

The choice between the two is less about the stocks themselves and your investment goals and risk tolerances. TC Energy is a no-brainer buy if your goal is generating investment income. But if you are looking for rapid growth and have adequate risk tolerance, a healthcare and tech stock like Well Health might be the right pick.

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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Investing

alcohol
Stocks for Beginners

Got $9,000? Invest in This Dividend Stock for $521.52 in Passive Income

You don't have to get the biggest growth stock or highest dividend yield for superb, stable passive income.

Read more »

Transparent umbrella under heavy rain against water drops splash background. Rainy weather concept.
Investing

Trump’s Trade War: These 3 TSX Stocks Are as Safe as it Gets

Here are three Canadian companies that are relatively safe from Trump tariffs due to their lack of U.S. exports.

Read more »

Man holds Canadian dollars in differing amounts
Stocks for Beginners

Top TSX Stocks to Buy With $3,000 Right Now

Are you wondering how to deploy $3,000 while preserving your downside? These TSX stock give you a nice mix of…

Read more »

Canadian dollars in a magnifying glass
Dividend Stocks

TFSA: Invest $15,000 in This TSX Stock and Create $5,960 in Annual Passive Income

Down 50% from all-time highs, Brookfield Renewable is a top TSX dividend stock that trades at a sizeable discount to…

Read more »

happy woman throws cash
Dividend Stocks

Never Miss a Payment: 2 Stocks That Send You Cash 12 Times a Year

These two top monthly dividend stocks, with up to 8.3% yield, could help you generate reliable passive income for years.

Read more »

protect, safe, trust
Investing

Safe Canadian Stocks to Buy Now and Hold During Market Volatility

Alimentation Couche-Tard (TSX:ATD) is a convenient way to get solid long-term growth at a discount.

Read more »

Investor reading the newspaper
Energy Stocks

Top Canadian Stocks to Buy Right Now With $2,500

Investing in undervalued Canadian stocks such as Propel should help you derive outsized gains in 2025 and beyond.

Read more »

stocks climbing green bull market
Dividend Stocks

1 Canadian Stock Ready to Surge in 2025 and Beyond

If you can identify the right time when a bearish stock is turning bullish, it’s possible to generate decent returns…

Read more »