With market turbulence often on the horizon, savvy Canadian investors are on the lookout for resilient opportunities to grow their portfolios. If you’re sitting on $2,000 and pondering where to invest, two mid-cap Canadian stocks might just be the ticket.
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Tamarack Valley
Tamarack Valley Energy (TSX: TVE), a Calgary-based oil and gas company, has been making waves in the energy sector. The Canadian stock specializes in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids.
In its recent earnings report for the full year ending December 31, 2024, Tamarack reported revenues of $1.34 billion, a slight decrease from the previous year’s $1.42 billion. However, net income saw a significant boost, climbing to $162.2 million from $94.2 million in the prior year. This uptick in profitability is a positive indicator for investors.
The company’s commitment to shareholder value is evident. Tamarack achieved a total shareholder return of 21%, facilitated by a 6% share buyback and a 2% increase in base dividends. Furthermore, the recent insider buying activity, with Senior Officer Brian Leslie Schmidt acquiring 84,734 shares valued at approximately $385,500, signals confidence in the company’s future prospects
Looking ahead, Tamarack continues to focus on efficient operations and strategic acquisitions to bolster its asset base. With a disciplined approach to capital allocation and a commitment to sustainable practices, the company aims to navigate market fluctuations effectively, making it a compelling option for investors seeking exposure to the energy sector.
WELL Health
On the healthcare front, WELL Health Technologies (TSX: WELL) has emerged as a leader in digital health innovation. The Canadian stock operates primary healthcare facilities and provides digital electronic medical records (EMR) software and services, thereby positioning itself at the intersection of healthcare and technology.
In the third quarter of 2024, WELL Health reported record revenue of $251.7 million, marking a 23% year-over-year increase driven by robust organic growth. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) also saw a healthy rise, reaching $32.7 million – a 16% improvement compared to the same period last year.
The Canadian stock’s growth strategy includes strategic acquisitions to expand its service offerings and geographic reach. Since December 2024, WELL has completed seven acquisitions, adding approximately $100 million in annualized revenue. Notably, these acquisitions were financed through cash without issuing new shares, reflecting prudent capital management.
WELL Health’s commitment to enhancing healthcare delivery through technology positions it well for future growth. As the demand for digital health solutions continues to rise, the Canadian stock should capitalize on this trend, offering investors exposure to a burgeoning sector.
Foolish takeaway
Both Tamarack Valley Energy and WELL Health Technologies present intriguing opportunities for Canadian investors. Tamarack offers exposure to the energy sector with a focus on shareholder returns and operational efficiency. In contrast, WELL Health provides a gateway into the rapidly evolving digital healthcare space, backed by strong financial performance and strategic growth initiatives.
Allocating $2,000 between these two Canadian stocks could provide a balanced approach, combining the stability of energy assets with the growth potential of digital health. So, whether you’re an energy enthusiast or a tech-savvy healthcare supporter, these Canadian mid-cap stocks offer avenues to potentially bolster your investment portfolio amidst market turbulence.
