If you’re looking to invest $1,000 in artificial intelligence (AI) but don’t want to chase overvalued tech giants, WELL Health Technologies (TSX:WELL) might be the AI stock for you. This Canadian company is quietly revolutionizing digital healthcare by integrating AI into telehealth, patient management, and clinical efficiency tools. In fact, WELL Health has been delivering impressive financial results, and its stock price has reflected that strength.
The numbers
WELL Health recently reported a record-breaking third quarter for 2024, with revenue hitting $251.7 million. This marked a 23% year-over-year increase, driven primarily by organic growth, as well as smart acquisitions that continue to expand its footprint in digital health. The AI stock’s ability to scale while maintaining profitability is what makes it stand out in the AI space. Unlike many AI-focused companies that burn through cash in pursuit of growth, WELL Health has proven it can generate real profits. In Q3, it achieved an adjusted net income of $13 million, or $0.05 per share, in line with last year’s performance.
Patient visits are another key metric that highlights WELL Health’s success. The AI stock recorded 1.5 million total patient visits during the quarter. A staggering 41% increase compared to the previous year. This rise suggests that demand for WELL Health’s AI-powered healthcare solutions is accelerating, positioning it as a leader in digital medical services. With its hybrid model of in-person clinics and virtual care, the AI stock is tapping into the best of both worlds, ensuring patients receive efficient, tech-enabled healthcare.
The stock
Stock performance has also been stellar. Over the past year, WELL Health’s share price has climbed roughly 70%, far outpacing many other AI and healthcare stocks. This rally reflects investor confidence in its ability to sustain growth and capitalize on AI-driven efficiencies in healthcare. Despite this run-up, analysts still see further upside. The stock’s average price target sits at $8.99, which represents a potential 47% gain from current levels.
A major factor contributing to WELL Health’s appeal is its smart acquisition strategy. The AI stock has been actively expanding its services and technology portfolio through acquisitions, adding complementary digital health platforms that enhance its AI capabilities. By integrating machine learning into diagnostics, patient engagement, and operational efficiency, WELL Health is not just following industry trends. It’s helping shape them.
The value
From a valuation perspective, the AI stock remains attractive. With a market capitalization of approximately $1.7 billion and a price-to-earnings (P/E) ratio of 22, WELL Health offers a reasonable entry point for long-term investors. Unlike some AI-driven companies trading at sky-high multiples, WELL Health still provides strong growth potential at a fair valuation. Its financial health is also solid, with strong cash flow generation and a manageable debt load, ensuring that it has the resources to continue expanding.
CEO Hamed Shahbazi has played a crucial role in WELL Health’s ascent, steering the company with a clear vision of making healthcare more accessible and efficient through technology. Under his leadership, WELL has expanded its presence across Canada and the U.S., positioning itself as a top-tier player in digital healthcare. With AI becoming an increasingly important component of medical diagnostics and patient management, the AI stock is well-positioned to ride the wave of innovation.
Foolish takeaway
Looking ahead, WELL Health’s focus on AI-driven healthcare solutions puts it in a strong position for long-term growth. As more healthcare providers adopt digital tools, WELL stands to benefit from its robust platform and expanding patient base. The AI stock has already surpassed the $1 billion annualized revenue run rate ahead of schedule, and its continued investment in AI-powered solutions suggests that this is just the beginning.
For investors looking to deploy $1,000 into AI without diving into overhyped tech giants, WELL Health offers a compelling opportunity. It combines the high-growth potential of AI with the stability of a proven business model in healthcare, making it a unique and attractive investment. Given its strong financials, rapid expansion, and promising outlook, WELL Health is one of the best mid-cap AI stocks to buy right now.
