Investing to become very wealthy over the years isn’t something that comes to you by making one good investment. It takes plenty of time and disciplined investing over several years to create lasting success. Yes, there is a degree of luck involved, but maximizing your chances of becoming a successful stock market investor requires making intelligent investments.
Identifying a part of the market that’s slated to deliver substantial returns can be an excellent way to find a good investment for your self-directed investment portfolio. These days, it seems anything that has something to do with Artificial Intelligence (AI) is the right move to make, and there’s no shortage of choices in the market.
If you’re looking for AI stocks, the TSX has plenty of publicly traded companies offering you exposure. Today, I will discuss an AI stock from the healthcare sector that you should take a good look at as a long-term holding for your portfolio.
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WELL Health Technologies
WELL Health Technologies Corp. (TSX:WELL) is a $1.1 billion market capitalization company that owns and operates a portfolio of primary healthcare clinics across North America through several business segments. WELL Health might not be a household name yet, but it seems like it’s well on its way to becoming one.
WELL Health offers support to thousands of medical practitioners and clinics through its digital health platform. The company came into the limelight during the pandemic, offering telehealth services during social distancing restrictions to a population that wanted safer access to healthcare during that time.
While the world has moved into a post-pandemic era, WELL Health remains a relevant business. The company’s expanded offerings have recently combined with AI to reduce costs while improving patient care across the board.
The AI stock saw stellar results in its first quarter for fiscal 2025. The company generated a record high revenue that was up by over 30% from the same period last year, and its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were up by 36% from Q1 2024.
A recent foray into AI has also picked things up for WELL Health. The company recently acquired HEALWELL AI, which is a company focusing entirely on helping practitioners make clinical decisions enhanced by AI. WELL Health anticipates that the acquisition will result in around $40 million per quarter in revenue through this platform.
The move, if it turns out to be successful, will see WELL Health move on from being a mere telehealth company into a full-fledged AI-powered healthcare data company.
Foolish takeaway
WELL Health’s recent acquisition will turn it into a company offering far more than simple telehealth services. Despite being in a high-growth phase, the company is bringing in loads of free cash flow. In its first quarter, the healthtech reported $11.8 million in free cash flow, reflecting the management’s ability to manage costs really well. Combined with the growth expected through its newly acquired platform, there’s no limit to how much the company can potentially grow.
The key to long-term success is having a substantial, well-balanced portfolio of high-quality stocks that can deliver massive returns in the long run. To this end, WELL Health Technologies stock can be an excellent holding to consider if you want to inject long-term growth into your self-directed investment portfolio.
