The U.S.-Canada tariff war continues, and it does not seem like it will let up any time soon. Donald Trump has implemented several tariffs on Canadian goods imported into the U.S. since he came into the Oval Office. In response, the Canadian government also imposed tariffs on billions of dollars worth of goods it imports from the neighbours south of the border.
The trade tensions have led to uncertainty in the economy, and the stock market has become volatile in light of the developments. As the stock market feels the heat due to macroeconomic uncertainty, investor sentiment is weighing heavily on the stock market. The recent selloff has pushed several high-quality Canadian stocks into undervalued territory.
While many new investors might not be too keen on allocating any money to the market, value-seeking investors are eyeing this as an opportunity. If you have a long-term outlook, a broader decline means you can invest in high-quality stocks at a discount.
Against this backdrop, WELL Health Technologies (TSX:WELL) might be an excellent stock to consider.
Well-positioned for growth
Using the downturn to your advantage as a value-seeking investor means identifying fundamentally strong companies trading at a discount. WELL Health Technologies is one such company, and it has what it takes for significant profitability and growth in the long run. WELL Health is a $1.30 billion market capitalization multichannel digital health technology company. It is also Canada’s largest owner and operator of outpatient health clinics.
Even in a post-pandemic era, the demand for its services is high. The steady rise in patient visits and strategic acquisitions are positioning the company for substantial growth. The company also surpassed $1 billion in annualized revenue in the third quarter of fiscal 2024, a quarter ahead of schedule.
The strong momentum looks likely to continue and the company seems on track to achieve its goal of generating $4 billion in revenue through its domestic operations. The company’s acquisitions have been a key driver for this growth, and it looks to continue its acquisitions strategy.
Foolish takeaway
A great thing about this stock is that the tariff situation between Canada and the U.S. has no bearing on it. Since the company does not engage in any kind of sales across the border, trade tensions will not impact its financials. Besides trade issues, the fact that it operates in the healthcare sector means it is already in a recession-resistant sector of the economy.
WELL Health also generates around 60% of its revenue in U.S. dollars due to its U.S.-based entities. A weaker Canadian dollar will still help WELL Health because the U.S. dollar is a natural hedge against currency volatility.
As of this writing, WELL Health stock trades for $5.20 per share. The overall investor sentiment clearly seems to be impacting its share prices. Instead of worrying about it, value-seeking investors can look at this as the best possible time to gain more exposure to the digital health technology stock to capture the capital gains once the market starts moving in the right direction.
