Global stock markets have been incredibly volatile for several months, leaving plenty of new investors unsure of where to get the best returns with their capital right now. If you can look past the challenges of short-term market volatility and embrace a long-term view, there are plenty of high-quality opportunities waiting for your investment capital.
The global landscape is changing across every sector of the economy, especially with the sudden rise in artificial intelligence (AI) technology advancements and adoption. AI is making improvements in every space, including the healthcare sector. The profound shift in healthcare technology, enabled by years of innovation and accelerated with AI technology, presents new and exciting growth opportunities for investors who can identify them.
One such tech stock in the healthcare sector is WELL Health Technologies (TSX: WELL). The $983.91 million market-cap company is one of the businesses leading the charge in healthcare innovation, and it trades at a considerable discount from its all-time highs.
Let’s take a better look at the stock to see why it might be an excellent holding to add to your self-directed investment portfolio.
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WELL Health Technologies
WELL Health used to be a telehealth company that came into the limelight a few years ago during the pandemic. Social-distancing restrictions and health scares forced telemedicine adoption to speed up much faster than anticipated. Business boomed for WELL Health, as it provided better access to healthcare services to patients when they needed it the most from the safety of their homes.
The company used the momentum well and made a series of aggressive acquisitions that have made it a comprehensive digital healthcare company. It is now Canada’s largest owner and operator of outpatient health clinics, delivering healthcare-related services across Canada and the U.S.
More recently, the company has started integrating AI technology into its range of services to improve the quality of patient care while streamlining operational efficiencies for healthcare providers. One of the best examples of its AI-powered innovations is WELL AI Voice, an assistant for healthcare providers that offers clinical documentation through natural language processing and voice recognition.
Its WELL AI Decision Support offers important insights and recommendations to healthcare professionals by analyzing vast sets of patient data to help them make more efficient treatment plans and accurate diagnoses.
Foolish takeaway
Despite the decline in the need for telehealth services in the post-pandemic era, WELL Health is doing well as a business. The company had strong financials in fiscal 2024, reporting a 19% year-over-year growth in annual revenue, an almost 75% increase in net income, and a 16.3% uptick in free cash flow attributable to its investors.
Looking ahead, the company has a positive outlook for fiscal 2025, with its projected revenue expected to be as high as $1.5 billion. As of this writing, WELL Health stock trades for $3.95 per share, down by over 46% from its 52-week high. If you are interested in investing in a high-growth space and have a well-balanced portfolio to help you ride the wave of any short-term market volatility, WELL Health stock can be an excellent pick to consider.
