Healthcare stocks have always been a reliable choice for investors looking for stability and growth. As 2025 unfolds, Canadian investors have some compelling options in the sector. Three companies standing out this year are Jamieson Wellness (TSX:JWEL), WELL Health Technologies (TSX:WELL), and Extendicare (TSX:EXE). Each healthcare stock brings something unique to the table, whether it’s steady revenue growth, technological innovation, or dependable dividends.
Jamieson Wellness
Jamieson Wellness, known for its vitamins and supplements, continues to solidify its position as a market leader. In its latest earnings report, the healthcare stock revealed a 16.3% year-over-year increase in revenue, reaching $176.2 million for the third quarter of 2024. This growth was largely driven by a significant boost in its Jamieson Brands segment, which saw sales rise by 20%.
One of the standout stories from Jamieson’s performance is its success in China, where revenue surged 81.7%, reflecting the healthcare stock’s strategic focus on international expansion. Analysts seem to like what they see, with a consensus price target of $46 for the stock, suggesting a potential upside of over 47% from current levels. With a forward dividend yield of 2.7%, Jamieson offers not just growth but also a bit of passive income for long-term investors.
WELL Health
WELL Health Technologies, a leader in digital healthcare, has continued to build momentum through both organic growth and acquisitions. The healthcare stock recently reported record revenue of $251.7 million for the third quarter of 2024, representing a 27% increase compared to the previous year. This was driven by a remarkable 23% organic growth rate, underscoring WELL’s ability to expand without solely relying on acquisitions.
That said, the healthcare stock has been busy on the acquisition front as well, completing seven transactions since December 2024. And thus adding approximately $100 million in annualized revenue. WELL Health’s management also revealed that they had reached a $1 billion annualized revenue run-rate ahead of schedule. A significant milestone that showcases the company’s rapid growth. While WELL doesn’t currently pay a dividend, its focus on reinvesting earnings for growth could translate into capital appreciation for investors.
Extendicare
Extendicare, a major player in senior care services, offers a more traditional approach to healthcare investing. The healthcare stock recently reported strong results, with quarterly earnings up 37.7% year over year and net income reaching $63.9 million over the trailing 12 months.
Revenue climbed to $1.42 billion, an 11.3% increase from the previous year, reflecting both higher occupancy rates in its long-term care facilities and growth in its home health services. Extendicare’s forward annual dividend yield stands at 4.19%, making it an attractive choice for income-focused investors who appreciate steady cash flow alongside potential capital gains.
Common value
Looking at the broader picture, these three healthcare stocks represent different facets of the healthcare sector. Jamieson Wellness taps into the ongoing health and wellness trend, offering products that cater to a global consumer base increasingly focused on self-care. WELL Health stands at the intersection of technology and healthcare, leveraging digital platforms to make healthcare more accessible and efficient. Extendicare, meanwhile, addresses the growing need for senior care as Canada’s population continues to age.
From a valuation perspective, all three healthcare stocks remain reasonably priced, given their growth prospects. Jamieson currently trades at a forward price-to-earnings ratio of 15.4, WELL Health at 19.4, and Extendicare at 15.7. While these aren’t bargain-basement valuations, these reflect the stability and resilience often associated with healthcare investments. The recent earnings strength and positive outlooks for all three healthcare stocks suggest each has room to grow — both in terms of share price and operational performance.
Bottom line
For investors looking to balance growth with stability, these three healthcare stocks offer an attractive mix. Whether you’re drawn to Jamieson’s consumer health products, WELL’s digital health platform, or Extendicare’s steady dividends, there’s a case to be made for each. As always, it’s wise to consider your own risk tolerance and investment goals before making any decisions. However, for those eyeing the healthcare sector, these stocks deserve a closer look.
