This Canadian Stock Could Be the Next Big AI Winner

AI stocks can be volatile investments, but this one is essential. Let’s get into why.

| More on:
Key Points
  • AI in healthcare presents massive investment opportunities by improving efficiencies and reducing costs in an essential industry.
  • WELL Health Technologies is a promising AI healthcare stock with a 57% revenue increase and tripled EBITDA.
  • WELL's expansion into diversified healthcare technology positions it for significant long-term growth despite some debt and risks.

Artificial intelligence (AI) is now everywhere. It’s in our web browsers, deliveries, our phones, and even our healthcare systems. Yet it’s the latter that could be one of the best opportunities out there for the next AI winner. And it could be a Canadian company.

So today, let’s look at why healthcare stocks invested in AI could be your next great investment, and why WELL Health Technologies (TSX:WELL) is the perfect stock to watch.

doctor uses telehealth

Source: Getty Images

Healthy AI

First, let’s look at why AI in healthcare is such a winning scenario. AI in healthcare has the potential to be one of the biggest investment stories out there. That’s because it’s already reshaping an industry that literally touches everyone. Unlike some tech fad, healthcare is essential. And AI can be essential in the way that it can lower costs, save lives, and unlock massive efficiencies.

For instance, healthcare drowns in data from medical records to lab results and everything in between. AI is the best place to use that data, as it can analyze patterns fast and efficiently. Then it can make use of that data for diagnosis, drug discovery, treatments, you name it. And in an aging population around the globe, the faster and cheaper we can provide healthcare, the better.

What’s more, money is already flowing in. Tech giants invest billions in partnerships with hospitals and pharmaceutical companies to get into AI. That’s because healthcare is an essential service, as we saw during the pandemic, and one that’s not going to disappear any time soon.

Why WELL Health works

For investors looking to AI in healthcare, WELL is a superior opportunity. The stock is a growth story in Canadian healthcare, but also in Canadian stocks, hitting record after record quarter. The AI stock just delivered a 57% year-over-year revenue growth record of $356.7 million. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) also tripled, showing the stock is exactly what long-term investors want.

Plus, it’s shifting from pure clinic to a diversified healthcare technology platform. Its software-as-a-service (SaaS) business, WELLSTAR, is on pace for over $100 million in annual revenue. Plus, HEALWELL is ramping up AI and data science, contributing $40 million during the second quarter.

More is on the way as well, with over one million Canadian patient visits achieved for the first time. That’s up 38% year-over-year. Of course, all the expansion means debt, which sits at $621 million. However, the stock is quickly working towards organic growth. And that’s exactly what long-term investors want to hear.

Bottom line

If you’re an investor hoping to get into AI stocks, then WELL could be one that belongs on your watchlist. The healthcare stock continues to surge each and every quarter, making it a high-risk, but certainly high reward investment. And that’s far better than what can be said for tech names in the AI industry. For investors who can therefore tolerate some volatility, this could be the chance to get in on AI in an essential sector.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Tech Stocks

a-developer-typing-lines-of-ai-code-while-viewing-multiple-computer-monitors
Tech Stocks

The Stocks I’d Most Want to Own If I Had $1,000 to Put to Work Today

Microsoft (NASDAQ:MSFT) stock looks like a great buy for those seeking a deal with $1,000 or so.

Read more »

AI concept person in profile
Tech Stocks

3 No-Brainer TSX Stocks to Buy While the Market Is Still Nervous

Three Canadian stocks stand out as smart nervous-market buys: a proven software compounder, a cheap-growing fintech, and a higher-risk digital…

Read more »

data center server racks glow with light
Stock Market

3 Powerful Stocks Worth Holding Through the Next 3 Years

With so much volatility in the world and the stock market, it can be hard investing over a week, let…

Read more »

Abstract Human Skull representing AI
Tech Stocks

1 Magnificent Canadian Tech Stock Down 65% to Buy and Hold for Decades

This battered Canadian software stock has sticky customers and real cash flow, but it needs debt and revenue progress to…

Read more »

dividends grow over time
Tech Stocks

3 Canadian Stocks That Look Expensive (But I’d Buy Them Anyway)

Ignoring “expensive” stocks while waiting for a great bargain? The higher price may reflect a business that keeps executing, keeps…

Read more »

Person uses a tablet in a blurred warehouse as background
Dividend Stocks

1 Ideal TSX Dividend Stock Down 55% to Buy and Hold for a Lifetime

Tecsys stock is down but delivering record EBITDA, 23% ARR growth, and a growing AI platform. Here is why this…

Read more »

Happy golf player walks the course
Tech Stocks

3 Canadian Stocks I Loaded Up on for Long-Term Wealth

If you are seeking businesses with durable demand, smart management, room to grow, and enough financial strength to handle a…

Read more »

Piggy bank and Canadian coins
Tech Stocks

How to Use Your Annual TFSA Room to Double Your Contributions

Your 2026 TFSA limit is $7,000. But smart investors use quality stocks like Microsoft to make that room work twice…

Read more »