Looking at the headlines these days, it’s hard to imagine that there might be some stocks that could thrive in 2025. Yet, this is almost always the case. There is usually something good happening for someone, somewhere.
Let’s take a look at two stocks that I think will thrive and soar in 2025 and beyond.
Cineplex
The first stock is Cineplex (TSX:CGX). I have discussed this stock in numerous articles over the years. Today, my investment thesis remains the same. Cineplex stock is cheap and underappreciated, while the company continues to strengthen after being hit by the pandemic.
First, let’s address Cineplex stock’s valuation. The stock is currently trading at $9.47. Its 2025 and 2026 expected earnings per share (EPS) are $0.58 and $1.01, respectively. This equates to a price-to-earnings multiple of a mere nine times 2026 expected earnings.
So, Cineplex stock is cheap. And this is understandable, as the company has been through a lot. Big losses last year, struggles to improve the balance sheet after the pandemic, and the writer’s strike are a few examples.
But those issues are in the past. The only question that might still be on investors’ minds is whether the movie exhibition business is still in demand. The answer to this is in the numbers. In recent years, we have seen all-time record box office results from various movies. We’ve also seen a nice rebound from pandemic-era attendance lows.
Cineplex’s most recent box office revenue result for February was 83% of 2019 levels and 124% of last year. While it remains below pre-pandemic levels, the momentum is up as the movie slate is ramping up again.
Well Health Technologies
Well Health Technologies (TSX:WELL) is a multi-channel digital health technology company and the largest owner of outpatient health clinics. It’s easy to see why this stock might do well in 2025 despite all the economic uncertainty and risks.
In its latest quarter (Q3 2024), Well Health reported its 23rd consecutive quarter of record-breaking results. Revenue increased 27% to $251.7 million. Also, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 16% to $32.7 million.
It’s a defensive company that’s clearly growing fast. Technological solutions are sorely needed in the healthcare industry, and Well Health is providing them. As a result, its expert technological solutions are in high demand. I expect this to be the case for the foreseeable future and for the growth to continue.
The primary care market in Canada remains a very large and pretty much untapped market. In fact, of the $40 billion of physician spending, Well Health has roughly $400 million. This means that there is still plenty of opportunity for growth.
Well Health is not only growing rapidly, but it’s also improving its profitability. In fact, the company is expected to post an EPS of $0.20 in 2024 after years of losses.
The bottom line
The two stocks discussed in this article are set to soar in 2025 for their relative defensiveness and their lack of exposure to the economic troubles and uncertainties that are in the headlines these days. Also, while these companies are very different, both are very well-run with clear strategic goals to increase shareholder value.
