People with little money can make it grow by investing in the stock market. Assuming you only have $5,000 to spare, three TSX stocks are smart buys right now. Vitalhub (TSX: VHI), Healwell AI (TSX: AIDX), and 5N Plus (TSX: VNP) trade at relatively low prices but are among the winning investments in 2024. The first two are healthcare stocks, while the third is a basic materials stock.
Source: Getty Images
TSX30 winner
Vitalhub is a high-flyer and looks unstoppable. At $10.15 per share, the year-to-date gain is 148.8. Had you invested $5,000 on year-end 2023, your money would be $12,438.73 today. This healthcare stock ranked 26th in the 2024 TSX30 List, the flagship program for Canada’s top-performing growth stocks.
The $516.2 million software company caters to Health and Human Services providers. It provides critical SaaS (Service-as-a-Solutions) solutions such as Electronic Health Record (EHR), Patient Flow, and Workforce Automation.
The client base includes hospitals, regional health authorities, long-term care facilities, home health agencies, correctional services, and community and social services providers. Vitalhub aims to simplify the user experience and optimize outcomes.
In Q2 2024, revenue climbed 24% year-over-year to $16.2 million, although the net loss reached $336.06. Nonetheless, its CEO, Dan Matlow, said significant organic growth and strategic advancements occurred during the quarter. “Looking ahead, VitalHub has created a solid platform on which we can continue to build,” he added.
Matlow is confident that with disciplined cash management, Vitalhub can capitalize on emerging opportunities and overcome challenges in the healthcare technology sector. The goal is to expand market leadership.
Absurdly cheap
Healwell AI is absurdly cheap at $1.64 per share (+78.67% year-to-date) but has rewarded investors with enormous gains. This $224 million healthcare technology company leverages artificial intelligence (AI) and data science for preventive care. The physician-led organization’s strategy is to develop and acquire technology and clinical sciences capabilities.
WELL Health Technologies, Canada’s largest owner and operator of outpatient health clinics, is a strategic partner. On October 29, 2024, the partners announced the expansion of their multi-year agreement. Healwell and WELL will launch and manage clinical trial sites at the latter’s clinic locations nationwide.
Based on market analysts’ 12-month average price target of $3.69, AIDX’s upside potential is +63.7%.
Lead global actor
5N Plus is equally prolific and deserves serious consideration. At $7.15 per share, current investors delight in the 89.2% year-to-date gain. This $636.7 million company produces specialty semiconductors and performance materials. It transforms metals into value-added specialty materials for global clients.
In Q3 2024 (nine months ending September 30, 2024), revenue and net earnings increased 25% and 76.6% to $78.8 million and $6.4 million, respectively, versus Q3 2023. “Our specialty semiconductors business showed sustained growth momentum, while the performance materials segment delivered strong results,” commented President and CEO, Gervais Jacques. Moreover, he said the strong quarterly results indicate that 5N Plus is ready to become the lead global actor in advanced materials technology.
Upward trajectories
Canadians can turn $5,000 into a substantial amount by investing in Vitalhub, Healwell AI, and 5N Plus. All three stocks have visible growth potential and will likely sustain upward trajectories beyond 2024.
