What’s Going on With WELL Health Stock?

WELL stock (TSX:WELL) made strong moves once again, with record earnings and even higher guidance for 2024.

| More on:
healthcare pharma

Image source: Getty Images

It was another record quarter for WELL Health Technologies (TSX:WELL) this month, sending shares up by about 8% after the earnings report. Yet despite record earnings, the company is still far below 52-week highs, and even further from all-time highs.

So what’s been going on with WELL stock, and is the recent jump in share price enough to turn investors around?

About WELL stock

Before we get into what happened, let’s get into what makes WELL stock so successful in the first place. The company came on the scene before the pandemic, but surged in share price due to its pandemic-friendly offerings.

The healthcare stock focuses on consolidating and modernizing healthcare clinics by providing them with a suite of digital tools and services. The company’s goal is to improve the efficiency and effectiveness of healthcare delivery while enhancing the patient experience.

WELL offers a variety of services, including electronic medical records (EMR) software, telehealth solutions, appointment scheduling systems, and virtual care platforms. These tools aim to streamline administrative tasks, facilitate communication between healthcare providers and patients, and enable remote consultations. Meanwhile, it continues to expand through acquisitions and has recently entered the artificial intelligence (AI) space.


The key, however, comes down to recent earnings. WELL stock may have reported record results during the first quarter, but that won’t mean much if it doesn’t come on the back of continued strong results. And even less if the outlook looks poor.

Yet in this case, the company has been strong. WELL stock reported record quarterly revenue of $204.5 million in the third quarter, with an upgrade to its guidance to $900 million in revenue for 2024. This included more organic growth as well.

By the fourth quarter, WELL stock reported record revenue once more of $231.2 million, with record net income of $33.8 million as well. It then increased its annual revenue guidance again to between $950 and $970 million.

What happened

So what actually happened during the first quarter? You guessed it, more records, and another guidance increase. WELL stock achieved record quarterly revenue of $231.6 million this time around, with net income climbing to $19.6 million – down from the last quarter, but still impressive.

Furthermore, WELL stock increased its guidance once again. The company now expects annual revenue for 2024 to be between $960 and $980 million. Furthermore, it believes the company’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) should be in the upper end of between $125 and $130 million.

More organic growth, more acquisitions, and more proof that the company is worth it sent shares upwards this month. And with positive earnings per share (EPS) during the first quarter of 2024, it was an earnings quarter that set WELL stock up for a strong year ahead. And it needs one after seeing shares drop so much in the last few years.

So with shares climbing, yet still remaining under $5 per share, now could certainly be the time to consider WELL stock once again.

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.

More on Tech Stocks

A shopper makes purchases from an online store.
Tech Stocks

1 Tech Stock I’d Buy Before Shopify

Shopify (TSX:SHOP) stock might be stagnating, which could mean this other tech stock is at a prime advantage.

Read more »

man touches brain to show a good idea
Tech Stocks

Nvidia Stock Becomes World’s Most Valuable Company: Buy Now or Beware?

Nvidia (NASDAQ:NVDA) stock is now the world's highest valued company, with a market cap of US$3.34 trillion. So, is the…

Read more »

Dice engraved with the words buy and sell
Tech Stocks

Is Lightspeed Stock a Buy, Sell, or Hold?

Lightspeed (TSX:LSPD) stock was supposed to surge after Dax Dasilva's return, yet it's still stagnating. So, what should investors do…

Read more »

Digital background depicting innovative technologies in (AI) artificial systems, neural interfaces and internet machine learning technologies
Tech Stocks

1 of the Best Canadian AI Stocks (With Dividends) to Buy Now

OpenText is an AI stock that trades at a significant discount to consensus price target estimates in June 2024.

Read more »

online shopping
Tech Stocks

3 Reasons to Buy Shopify Stock Right Now

Improving earnings quality, sustained cash flow growth, and another reason support a buy-the-dip thesis on Shopify (TSX:SHOP) stock today

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Tech Stocks

2 Canadian Growth Stocks I’d Stash in a TFSA for the Long Run

Here's why Constellation Software (TSX:CSU) and Shopify (TSX:SHOP) are two top Canadian stocks long-term investors should consider.

Read more »

Wireless technology
Tech Stocks

Predictions for the Top Canadian Tech Stocks in June 2024

Whether it's the growth of artificial intelligence or e-commerce, these three tech stocks offer massive growth in June and beyond.

Read more »

Golden crown on a red velvet background
Dividend Stocks

These 5 Stocks Have Unstoppable Dividend Growth

These five stocks can form a diversified stock portfolio of dividend aristocrats from the TSX.

Read more »