A small amount of capital is no longer a hindrance to investing in stocks. You don’t need to be flush with cash like the rich to make money in the stock market. With the right investment strategy and choices, $1,000 can go a long way and become a fortune over time.
Healwell AI (TSX: AIDX) and Rogers Sugar (TSX: RSI) are no-brainer stocks to buy right now. Both small-cap stocks are relatively cheap (less than $10 per share combined), but the earning potential is enormous. The healthcare stock is a high-flyer, while the consumer staples stock is a pure-dividend play.
Growth investing
Healwell AI is suitable for growth investors. At only $2.34 per share, the year-to-date gain is an eye-popping 210.7%. A $1,000 investment at year-end 2023 is worth $3,120 today. Market analysts covering AIDX recommend a strong buy rating. Their 12-month average and high price targets are $3.69 and $5, or an upside potential between 57.7% and 113.7%, respectively.
The $370 million healthcare technology company uses artificial intelligence (AI) tools and data science for preventive care and early disease detection. Healwell AI is also a physician-led organization whose mission is to improve healthcare in Canada and save lives.
Healwell AI has yet to report income, although the long-growth runway and nearly $1 billion in M&A opportunities in the clinical and digital space are clear paths to profitability. “We’re incredibly optimistic about our future trajectory, driven by a combination of organic growth and strategic mergers and acquisitions,” said its CEO, Dr. Alexander Dobranowski.
In Q1 2024 (three months ended March 31, 2024), revenue climbed 132% year-over-year to $4.58 million, while net loss improved to $6.3 million compared to $7.44 million in Q1 2023. Dr. Dobranowski believes the strategic alliance with WELL Health Technologies, Canada’s largest outpatient medical clinic owner-operator, is a competitive advantage.
This month alone, Healwell AI entered into agreements to acquire VeroSource Solutions and BioPharma Services. The former will help enterprises adopt AI-powered population health capabilities, while the latter should expand in AI-enable clinical research offerings.
On June 26, 2024, Healwell AI invested US$2 million in xAI, one of the most valuable AI companies globally. The strategic investment is a significant opportunity as it should enhance and accelerate the development of the company’s healthcare-focused data science capabilities.
Dividend investing
Rogers Sugar isn’t a flashy or high-flying stock but a reliable passive income provider. At $5.77 per share, this consumer-defensive stock pays a generous 6.2% dividend. Your $1,000 investment will generate $15.60 every quarter ($62.40 annually).
The $738 million company operates cane sugar refineries and produces sugar and maple products. In the first half of 2024, total revenues and net earnings increased 10.3% and 8% respectively to $589.6 million and $27.8 million versus the same period in 2023. Mike Walton, President and CEO of Rogers and Lantic, said the profitable growth from the business segments reflect strong product demand and improved operations.
Walton expects strong financial results in 2024 due to the ongoing capacity expansion. Rogers Sugar should continue to grow and be an enduring business.
Profitable options
Healwell AI and Rogers Sugar are profitable investment options for beginners and thrifty investors. With a $1,000 investment, you can be a growth investor, dividend investor, or both.
