When it comes to finding high-quality growth stocks that are trading at compelling valuations at the start of 2026, WELL Health Technologies (TSX:WELL) continues to be one of the most puzzling stocks on the TSX.
On the surface, it looks like a textbook growth story. Revenue keeps hitting records, patient volumes continue to climb, and the company is steadily simplifying its business to focus on higher-quality, more predictable operations.
Yet despite all of that, the stock continues to trade at a level that suggests investors are either unconvinced or simply impatient. That disconnect is exactly what makes 2026 such an important year for WELL Health stock.
The company appears to be approaching a point where fundamentals and valuation can no longer stay this far apart, especially if management continues to execute on its key priorities.
So, the real question for investors is not whether WELL is still a strong business, but whether 2026 is the year the market finally starts to reward it.
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WELL’s business performance continues to improve
Although WELL’s share price has struggled ever since the pandemic, one thing that should be clear by now to long-term investors is that WELL’s core operations are working.
First off, it has proven for years that it can make attractive, value-accretive acquisitions to grow its operations, whether it was digital health apps a few years ago or outpatient clinics in Canada more recently.
In addition, its Canadian outpatient clinic business, which WELL has now chosen to prioritize, continues to post strong organic growth, driven by rising patient visits, practitioner expansion, and steady demand for primary care services.
In fact, in recent quarters, patient visits have topped one million for consecutive periods, which is a strong indicator that the company’s platform is scaling efficiently.
Furthermore, WELL’s revenue and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) continue to set records.
Therefore, not only has WELL proven for years that it can rapidly expand its sales, it’s now proving it can scale and grow profitability as it transitions from an early-stage healthcare tech stock to a more established all-around healthcare business.
Why WELL Health stock still looks cheap
Despite its execution and the fact that WELL has consistently beaten analyst expectations, WELL trades at a valuation that is hard to ignore.
At roughly 12.7 times forward earnings, the stock is priced more like a slow-growth or mature business than a healthcare platform that is still expanding its footprint and improving profitability.
That multiple is not only low relative to peers, but also below WELL’s own historical average since becoming consistently profitable, which has traded as high as 25 times in recent years.
That means that one of the best growth stocks in one of the most defensive industries on the market is trading cheaper than almost every other business today.
Therefore, it’s not surprising that all seven analysts covering WELL Health stock are rating it a buy. Furthermore, its average analyst target price is sitting at $7.42, a more than 75% premium to where WELL Health stock is trading today.
So not only does it offer significant long-term growth potential, but it also has a tonne of potential to rally back to fair value in the near term.
2026 could be a catalyst-heavy year
What makes 2026 particularly interesting is that WELL has several potential triggers that could shift how the market views the stock.
One of the most significant is management’s ongoing effort to simplify the business by divesting non-core U.S. assets.
By exiting operations that are lower margin or more volatile, WELL is aiming to sharpen its focus on the Canadian market, where its clinic model is more predictable and defensible.
Another major potential catalyst is the planned IPO of WELLSTAR, the company’s software subsidiary.
So, if you’re looking for a high-quality growth stock that you can buy at a discount today and plan to hold for years, WELL is undoubtedly one of the best.
