What to Know About Canadian Healthcare Stocks for 2025

No matter what, Canadians need healthcare, which is why healthcare stocks are such a strong choice.

The Canadian healthcare sector is poised for significant developments in 2025, influenced by technological advancements, policy shifts, and an increased emphasis on health equity. For investors, understanding these trends is crucial when considering opportunities in healthcare stocks. So, let’s get into what’s going on with this sector and some options investors may want to consider.

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What’s happening in healthcare?

Globally, healthcare systems are prioritizing operational efficiency and patient engagement. A survey by the Deloitte U.S. Center for Health Solutions revealed that over 70% of health system leaders across five countries are focusing on enhancing productivity and patient interactions in 2025. This emphasis is expected to drive innovation in areas like immunology, precision medicine, and neuropsychiatric treatments.

In Canada, the healthcare landscape is undergoing notable transformations. Policy changes, particularly those influenced by recent elections, are addressing health equity concerns and integrating artificial intelligence (AI)-driven solutions into patient care. These shifts present both challenges and opportunities for healthcare companies operating in the country.

Several Canadian healthcare companies are navigating this evolving landscape. So, let’s look at four investors you may want to consider in the near future.

Four healthcare stocks to watch

WELL Health Technologies (TSX: WELL) has been active in expanding its digital health services and acquiring clinics, positioning itself favourably amid industry shifts. The healthcare stock surpassed a $1 billion annualized revenue run-rate, achieving record revenue of $251.7 million in the third quarter (Q3) of 2024, marking a 27% increase compared to the same period in the previous year. This growth was driven by strategic acquisitions and organic expansion in its digital services. WELL Health’s focus on integrating technology into healthcare delivery aligns with the broader industry trend towards digital transformation.

Andlauer Healthcare Group (TSX: AND) specializes in healthcare transportation and logistics. The healthcare stock reported consolidated revenue of $650.5 million for the year ending Dec. 31, 2024. Its earnings before interest, taxes, depreciation, and amortization (EBITDA) margin stood at 25.3%, within the target range of 24% to 26%. Earnings per share (EPS) were reported at $1.60, reflecting a stable financial performance. Andlauer’s consistent results underscore its critical role in the healthcare supply chain, ensuring the timely and safe delivery of medical products.

Jamieson Wellness (TSX: JWEL), known for its health supplements, continues to capture consumer interest. In Q4 2024, the healthcare stock achieved strong revenue growth, with total revenue reaching $733.8 million for the full year, an 8.5% increase from the previous year. Despite a decline in strategic partner revenue, Jamieson expanded its market leadership in Canada and reported record cash flows.

Extendicare (TSX: EXE), a provider of senior care services, addresses the needs of an aging population. In Q4 2024, the company reported an adjusted EBITDA increase of 43.5% to $33.4 million, driven by improvements across all three business segments. Revenue for the quarter increased by 11.8% to $391.6 million. Extendicare’s focus on enhancing care quality and expanding its services positions it well to meet the growing demand for senior care in Canada.

Bottom line

The Canadian healthcare sector in 2025 is characterized by innovation, policy-driven changes, and a focus on equity. Companies like WELL Health Technologies, Andlauer Healthcare Group, Jamieson Wellness, and Extendicare are at the forefront of these developments. Investors should conduct thorough research and consider both company-specific and broader market factors when evaluating opportunities in this sector. But if you’re watching healthcare stocks, these belong at the top of that list.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Andlauer Healthcare Group. The Motley Fool has a disclosure policy.

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