Investing over the long term is an excellent strategy as it helps in riding out temporary downsides while allowing your investment enough time to benefit from the power of compounding. It also reduces expenses, such as transaction fees and taxes. Given the advantages of long-term investing, I am bullish on the following three picks, which can deliver multi-fold returns in the long run.
WELL Health Technologies
WELL Health Technologies (TSX:WELL) offers a wide range of services for healthcare professionals, including virtual care services, electronic medical records (EMR) software, and office management software applications. The company continues to deliver healthy quarterly performances, with its revenue growing by 37% in the March-end quarter. Meanwhile, its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) and EPS (earnings per share) grew by 6% and 43.3%, respectively.
Meanwhile, digitizing clinical procedures and growing virtual healthcare adoption has created a multi-year growth potential for WELL Health. The company is investing in artificial intelligence to develop innovative products to strengthen its footprint. Further, the company has adopted a cost-optimization program, which could improve its operational efficiency and drive profitability.
However, WELL Health has been under pressure over the last few months, losing over 32% of its stock value. Amid the correction, the company trades at 13.2 times analysts’ projected earnings for the next four quarters, making it an attractive buy.
Lightspeed Commerce
Lightspeed Commerce (TSX:LSPD), which offers an omnichannel commerce platform and payment solutions, is my second pick. In the March-ending quarter, its revenue grew by 25% amid growth across transaction-based and subscription-based revenue. It posted an adjusted net income of $8.5 million compared to an adjusted loss of $0.4 million in the previous year’s quarter. It ended the quarter with cash and cash equivalent of $722.1 million. So, it is well-positioned to support its growth initiatives.
The unified POS (point of sale) and payments initiative has resonated with Lightspeed’s customers, expanding the adoption of its payment platform. The growing customer base, higher ARPU (average revenue per user), and increased transition towards higher transaction value customer locations could boost its financials. Further, the company has slashed around 10% of its workforce and continues exploring other cost-cutting initiatives that could improve its profitability. Its healthy outlook and an NTM (next-12-month) price-to-sales multiple of two makes it an excellent buy.
BlackBerry
BlackBerry (TSX:BB), which has exposure to high-growth sectors, such as IoT (Internet of Things) and cybersecurity, is my final pick. Despite the near-term volatility, its long-term growth prospects look healthy, given the growing demand for next-generation software-defined vehicles and its royalty backlog from new design wins. The company is focusing on new innovative product launches and making strategic partnerships to strengthen its position in the IoT space.
Meanwhile, amid the uncertain economic outlook, several companies have reduced their IT spending, which could hurt BlackBerry’s cybersecurity revenue in the near term. However, given its innovative product offerings and blue-chip customer base, the company is well-equipped to overcome its near-term weakness and drive its financials in the long run. However, amid the recent correction, BlackBerry’s NTM price-to-sales multiple has declined to 2.7. Considering all these factors, I believe BlackBerry would be an excellent long-term buy.
