After a Good Run, Are These Bullish Stocks Still Worth Buying Today?

The length of a bull run is a difficult metric to predict, but it’s important because it may help investors determine whether or not it’s too late to buy a bullish stock.

| More on:

When it comes to buying stocks that are already bullish or taking a break from their bullish phase, it’s wise to be careful. If you purchase a bullish stock about to run out of steam, you are more likely to incur a short-term loss than a profit.

And if you mistake the beginning of a bear market phase for a temporary reprieve in the bullish run, it may be weeks or months before you recoup your investment, let alone make a profit.

With that in mind, let’s look at two bullish stocks and what the future might hold for them.

A construction business

Ontario-based Bird Construction (TSX:BDT) experienced exceptional growth in the last 12 months — over 186%. Underlying this impressive growth is a solid (and parallel) Earnings-per-share growth. Also, despite this strong upward surge, the stock is still trading at a reasonable and fair price-to-earnings (P/E) ratio of 18.

Created with Highcharts 11.4.3Bird Construction PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

The fact that it didn’t become overvalued after such a powerful growth surge is reason enough to consider this stock. The company has also grown its payouts by a significant margin of 30% in 2024. This is one of the reasons why the yield has remained at a reasonable level of 2.1% despite the surge in stock price.

Whether the stock will keep growing at the current pace or if a stagnation or correction is coming is difficult to answer. A slump in earnings or a major hit to the construction industry might derail the company’s bullish phase. Still, even if no negative catalyst comes along, it might be prudent to expect a limited amount of growth in the future, as the stock is already plateauing.

A healthcare technology company

Healwell Al (TSX:AIDX) offers its investors exposure to two different industries: healthcare and artificial intelligence (AI). However, its performance has been contrary to both healthcare and tech stocks. The stock slumped hard between its inception and mid-2023, when it hit rock bottom. It was trading at a 98% discount, but it made a solid recovery and has climbed over 2,100% in fewer than 14 months.

Created with Highcharts 11.4.3Healwell Ai PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

The stock has returned over 170% to its investors this year alone, and that’s after a 34% slump that the stock is still struggling to recover from.

The current slump may be temporary, and the stock may start growing at an amazing pace again, but that would require certain positive catalysts, like the company becoming profitable or some of its technologies gaining mainstream recognition or endorsement of the medical community. Or, it could be the beginning of a long-term bear market.

Foolish takeaway

Out of the two bullish stocks, Healthwell AI might be a more prudent buy than Bird Construction since the latter is definitely plateauing after a long bullish run. In contrast, Healthwell AI might be able to leverage not just its internal strengths but also the momentum of the AI hype train.

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

a man celebrates his good fortune with a disco ball and confetti
Stocks for Beginners

Prediction: Here are the Most Promising Canadian Stocks for 2025

These Canadian stocks show some of the best growth outlooks out there, so don't ignore them any longer.

Read more »

concept of real estate evaluation
Dividend Stocks

Canadian Real Estate Stocks: How I’d Navigate This Sector With $15,000 During The Pullback

A $15,000 investment split among these two undervalued Canadian defensive REITs could generate high income yields with capital gains upside

Read more »

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

3 Canadian Artificial Intelligence Stocks to Buy and Hold Until 2040

These three Canadian tech stocks to help you benefit from the surging demand for AI tech and infrastructure in the…

Read more »

money goes up and down in balance
Tech Stocks

Billionaires Are Selling Apple Stock and Buying This TSX Stock in Bulk

Billionaires might be dumping Apple stock after it lost over US$600 billion last week. But this other tech stock looks…

Read more »

A worker gives a business presentation.
Dividend Stocks

2 Canadian Dividend Stocks I’d Buy With $3,000 Whenever They Dip in Price

There's no shortage of great Canadian dividend stocks to buy, but these two pose huge upside right now for income…

Read more »

A train passes Morant's curve in Banff National Park in the Canadian Rockies.
Stocks for Beginners

Where Will CP Stock Be in 5 Years?

CP stock has been showing signs of real growth lately, but will that peter out in the next few years?

Read more »

A person looks at data on a screen
Investing

How I’d Position $7,500 in Canadian Value Stocks Despite Market Uncertainty

Air Canada is an example of a cheap value stock that's worth considering today despite the market uncertainty.

Read more »

Data center woman holding laptop
Tech Stocks

Better Tech Stock: Lightspeed Vs. Kinaxis?

These two tech stocks were once on top of the world, but after coming down in price, it might be…

Read more »