Investors seeking affordable yet high-potential stocks on the TSX should consider seeking out value – not just in terms of share price, but fundamentals as well.
That’s why today we’re considering WELL Health Technologies (TSX:WELL), StorageVault Canada (TSX:SVI), and NorthWest Healthcare Properties REIT (TSX:NWH.UN). These companies are trading under $10 per share and have demonstrated strong growth potential and stability, making them attractive choices for July 2024.
WELL stock
Priced around $5, WELL Health is a telehealth and healthcare technology company that has gained analysts’ favour. The company’s aggressive growth through acquisitions and its expanding network of clinics and digital health services support its strong revenue growth. WELL Health’s diversified healthcare offerings and consistent performance make it a reliable investment.
WELL Health has been a standout performer in the healthcare sector, capitalizing on the growing demand for digital health services. In Q1 2024, WELL reported record quarterly revenue of $231.6 million, up 37% year-over-year. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 6% to $28.3 million. Plus, adjusted net income rose to $20.2 million from $14.1 million in Q1 2023.
The company achieved a record 1.3 million patient visits in Q1 2024, a 34% increase from the previous year, driven by both organic growth and strategic acquisitions. WELL’s expansion into the U.S. market and its growing network of clinics have solidified its position as a leader in telehealth. Analysts are optimistic about WELL’s future, given its robust financial performance, strategic acquisitions, and the continued growth of the digital health market.
StorageVault
Trading around $4.65, StorageVault Canada is favoured for its growth in the self-storage sector. The company has been actively acquiring storage properties, which boosts its asset base and potential revenue. Analysts are optimistic due to the company’s strategic acquisitions and increased dividends, making it a solid defensive stock with stable cash flows.
StorageVault is a leading player in the self-storage industry, with a strategic focus on acquiring and managing storage properties across Canada. In Q1 2024, SVI reported revenue of $69.8 million, a 21% increase year-over-year, and net income of $7.4 million, up from $5.6 million in Q1 2023. The company’s adjusted funds from operations (AFFO) also saw an 18% increase, reaching $18.3 million.
SVI’s growth is driven by its aggressive acquisition strategy and improved occupancy rates. The recent acquisition of additional storage properties has strengthened its market presence. And the company’s decision to increase its quarterly dividend reflects its confidence in future growth. Analysts favour SVI for its stable cash flows, defensive business model, and potential for continued expansion in the self-storage sector.
NorthWest REIT
Priced at about $5, NorthWest Healthcare is a top pick for its resilience and growth in the healthcare real estate sector. The company owns and operates healthcare properties globally, ensuring steady rental income even during economic downturns. Plus, its acquisition strategy in international markets further enhances its growth potential, coupled with a dividend yield of around 7.2%.
NorthWest Healthcare Properties Real Estate Investment Trust (REIT) is a premier healthcare real estate investment trust with a diversified portfolio of properties across Canada, Europe, and Australia. In Q1 2024, NorthWest stock reported revenue of $102.5 million. That was a 7% increase year-over-year, and net operating income (NOI) of $58.3 million, up 6% from Q1 2023. The REIT maintained a high occupancy rate of 96%, highlighting its strong tenant base and stable cash flows.
NorthWest stock’s strategic acquisitions and consistent performance make it a reliable investment. Especially in the healthcare sector, which tends to be resilient during economic downturns. The REIT’s monthly distribution of $0.067 per unit provides an attractive yield for income-focused investors. Analysts appreciate NorthWest for its stability, defensive qualities, and growth potential through international expansion.
Bottom line
WELL Health, StorageVault, and NorthWest REIT are excellent choices for investors looking for affordable yet promising stocks on the TSX. Their strong financial performances, strategic growth initiatives, and market positioning make them stand out in their respective sectors. As the healthcare and storage industries continue to grow, these stocks offer significant upside potential and stability, making them worthy additions to any diversified portfolio.
