After a good start to the year, the Canadian stock market is experiencing plenty of volatility. President Trump’s inauguration and ensuing executive orders regarding tariffs on Canadian goods have started a trade war, leaving plenty to worry about. The S&P/TSX Composite Index rose 3.66% between January 2 and January 30. Since then, the Canadian benchmark index has declined by over 4%.
The macroeconomic uncertainty right now is taking a toll on stock market investors, leading to losses left, right, and centre with falling share prices across the board. In times like this, investing in growth stocks might not seem like the best way to use your money. However, now might be the perfect time to do so.
Today, we’ll discuss why it might be a good time to invest in growth stocks and a TSX telehealth stock that should be on your radar.
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Finding the right opportunities
Most investors consider volatile market conditions a time to be very reluctant to put any of their money into the stock market due to the risk of downturns and losses. Yes, it’s true that investing in the stock market in harsh economic environments is riskier than usual. To invest in growth stocks right now poses an even greater threat to the value of your invested capital. However, using your capital wisely right now can pay off with massive returns later.
Volatile conditions see plenty of overvalued stocks decline to more reasonable valuations. Still, not every stock with falling share prices is coming down to fair levels. The negative sentiment sees plenty of investors pull money out of fundamentally solid stocks as well. Stocks with strong underlying businesses are well-positioned to deliver outsized returns once the dust settles and the market normalizes.
Against this backdrop, WELL Health Technologies (TSX: WELL) can be an excellent example to consider.
Telehealth giant
WELL Health is a Canadian company with a $1.25 billion market capitalization headquartered in Vancouver, bridging the gaps in the healthcare sector with tech-based solutions. The company came into the limelight during the pandemic, when social-distancing measures skyrocketed the demand for telehealth services.
WELL Health used its momentum during the pandemic to make strategic acquisitions where possible. Now, the multichannel digital health technology company is Canada’s largest owner and operator of outpatient health clinics. It owns and operates many primary healthcare facilities across Canada and the United States. The company is profiting from strong growth, and it’s evident in its quarterly reports.
In the third quarter (Q3) of fiscal 2024, WELL Health reported yet another quarter of record results. For the 23rd quarter in a row, it posted positive results. The company’s revenue increased by 27% year over year, and its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 16%.
Foolish takeaway
As of this writing, WELL Health stock trades for $4.97 per share. Down by over 32% from its 52-week high, the stock is trading for a significant discount. WELL Health stock has a business that will remain unaffected by the tariff war. It has a solid pipeline of signed acquisitions and a large addressable market. There is a solid demand for its services, and it keeps posting positive results quarter after quarter. It might be an excellent investment to consider for your self-directed investment portfolio to inject some serious growth.
