The Toronto Stock Exchange has been resilient for most of 2024, although it has been mirroring the movement of Wall Street across the border lately. Canada’s primary stock market has been on a rollercoaster ride since the start of August. The year-to-date gain has narrowed to 4.4%, with three of 11 primary sectors in the red.
Many individual stocks continue to outperform and beat the market. Celestica (TSX: CLS) benefits from the artificial intelligence boom and is up 57.5% year-to-date, a close second to American AI king NVIDIA.
However, if you’re looking for the best TSX stock to buy today, one name stands out in the healthcare sector. Small-cap stock Vitalhub Corp. (TSX: VHI) has soared, notwithstanding the elevated market volatility. At only $8.21 per share, current investors enjoy a 101.2% year-to-date gain.
Vitalhub’s trailing-one-year price return is 229.7% and had you invested $6,498.90 a year ago ($2.49 per share), your money would be $21,428.10 today. VHI is fast-rising and has the makings of a high-growth stocks. Also, market analysts covering the stock recommend a ‘strong buy’ rating because the business is growing.
Health Information Services
The $416.6 million company from Toronto operates in the Health Information Services industry and develops healthcare software. Vitalhub caters to health and human services providers as well as stakeholders such as regional health authorities, and hospitals, among others.
VitalHub offers comprehensive Software-as-a-Service (SaaS) solutions, including Electronic Health Record, patient flow, and workforce automation and compliance.
Partnerships and acquisitions
Establishing partnerships to widen reach and coverage is an ongoing concern. The latest is with Lumenus Community Services, an organization that provides comprehensive support services for individuals and families. Management is likewise pursuing strategic acquisitions to strengthen Vitalhub’s market position.
In June this year, Vitalhub acquired Premier I.T. Partnership Limited, a company offering workforce planning, development, and performance solutions for the healthcare sector. The acquisition will help strengthen relationships with all combined healthcare customers in the United Kingdom.
Late last month, Vitalhub signed a definitive agreement to acquire MedCurrent Corporation and its subsidiaries, an arrangement approved by the court under the Business Corporations Act.
MedCurrent is a Clinical Decision Support (CDS) company focused on improving the quality of care and managing health system costs. The closing of the MedCurrent transaction will increase Vitalhub’s operating companies to 10.
Financial performance
In Q1 2024, Vitalhub’s revenue increased 17.5% to $15.2 million versus Q1 2023, while net income jumped 87.7% year-over-year to $1.3 million. Its CEO, Dan Matlow, said, “We are thrilled to report that VitalHub has kicked off 2024 with outstanding momentum.” He adds that the focus is on driving operational excellence and continuous expansion of solution offerings.
Other significant business highlights are the 56% year-over-year increase in EBITDA (earnings before interest, taxes, depreciation, and amortization) to $3.1 million and the 31% jump of the annual recurring revenue (ARR) to $47.8 million from a year ago.
Unstoppable growth trajectory
Matlow said confidently, “As we move through 2024, VitalHub is well-positioned to continue our growth trajectory.” The growth is well-planned: expanding reach in existing markets, exploring new opportunities, and enhancing the product portfolio through innovation and strategic mergers and acquisitions. Expect the stock to deliver outsized gains in 2024 and beyond if plans are met.
