Investing in beaten-down growth stocks that are fundamentally strong is a proven strategy to build long-term wealth. Typically, growth stocks deliver outsized gains during bull runs and underperform significantly when sentiment turns bearish. However, a steep pullback in valuations allows long-term investors to buy the dip and benefit from outsized gains over time. Here is one such magnificent TSX stock down over 50% that you can buy and hold forever. Let’s see why.
Is this TSX stock a good buy?
Valued at a market cap of $227 million, Profound Medical (TSX:PRN) develops MRI-guided therapeutic systems for incision-free ablation of diseased tissue. Its flagship TULSA-PRO system treats prostate disease with robotically driven ultrasound, while Sonalleve treats conditions including uterine fibroids and bone metastases.
During an investor event last month, Profound Medical highlighted its TULSA-PRO technology, positioning the company at an “inflection point” for mainstream adoption. CEO Arun Menawat announced the successful completion of enrollment in the CAPTAIN Level 1 randomized controlled trial comparing TULSA to robotic prostatectomy, with preliminary results showing superior patient outcomes.
The company unveiled its new TULSA AI volume reduction module for BPH (Benign Prostatic Hyperplasia) treatment, expanding its addressable market to approximately 400,000 additional patients. Clinical data presented showed TULSA offers significant advantages: no blood loss, no overnight hospital stays, less pain, and better overall health post-procedure compared to traditional surgery.
Profound also introduced TULSA+, a comprehensive solution combining TULSA-PRO with Siemens’ 0.55 Tesla MAGNETOM Free.Max interventional MRI, which is designed to make the technology more accessible to urologists. This turnkey solution addresses previous barriers to adoption by providing equipment, workflow optimization, and economic benefits through a single monthly fee.
Chief Commercial Officer Tom Tamberrino highlighted the positive economics enabled by Medicare reimbursement that began in 2025, projecting 70% growth this year and triple-digit growth in 2026. Multiple physicians at the event noted high patient satisfaction, with 88.5% of patients willing to recommend TULSA to family members.
Profound Medical is positioning TULSA as the next evolution in prostate disease treatment, similar to how robotic surgery revolutionized the field previously, calling it “incision-free surgery” for both cancer and BPH treatment.
This health tech TSX stock is growing rapidly
In the fourth quarter of 2024, Profound Medical reported revenue of $4.2 million, an increase of 108% year over year. Moreover, its gross margins expanded to 71% from 52% over the last 12 months.
Profound is expanding its addressable market with the new BPH TULSA AI module, which will triple its target patient population from 200,000 cancer patients to approximately 600,000 total prostate disease patients annually.
Analysts tracking the TSX stock expect its sales to rise from $15.22 million in 2024 to $291 million in 2029, indicating a compounded annual growth rate of 80.4%.
This rapid expansion will help the company benefit from economies of scale and improve profit margins steadily. Bay Street expects Profound Medical to report adjusted earnings per share of $4.42 in 2029, compared to a loss per share of $1.60 in 2024.
If the TSX stock is priced at a cheap forward price-to-earnings multiple of 10 times, it will trade around $44 in early 2028, indicating an upside potential of almost 500% from current levels.
