1 Canadian Stock Ready to Rocket Through 2026

Here’s why this high-potential growth stock with defensive operations has the potential to see a major rally in 2026.

| More on:
Key Points
  • WELL Health (TSX:WELL) — an omnichannel digital‑health leader with Canada’s largest outpatient‑clinic network that grew by acquisition (252 clinics, +19% in 2025) and posted strong operational gains (Q3 2025 revenue +56% y/y; 4.3M patient visits) with improving adjusted‑EBITDA margins, yet trades well below fair value.
  • Near‑term catalysts — planned U.S. non‑core asset sales and a mid‑2026 WELLSTAR SaaS spin‑out could unlock billions and prompt a re‑rating; all 7 covering analysts rate it a buy and the average target (~$7.29) implies roughly 85% upside.
  • 5 stocks our experts like better than WELL Health Technologies

With 2026 already off to a hot start, and the TSX continuing to touch new all-time highs, it’s getting harder to find high-quality Canadian stocks that can rally rapidly throughout the year.

While the entire market has momentum right now, many high-quality Canadian stocks are already near or above their fair value.

So, if you’re looking to add Canadian stocks today with significant growth potential in 2026, you don’t just have to try to find high-quality companies; you need to find high-quality stocks that have significant potential trade well below their fair value.

The good news for investors, though, is that while there aren’t many high-quality Canadian stocks trading cheaply, one stock that continues to have significant potential, WELL Health Technologies (TSX: WELL) is trading significantly below its fair value.

space ship model takes off

Source: Getty Images

Why is WELL Health one of the best Canadian stocks to buy now?

There are several reasons to consider an investment in WELL Health today. First off, WELL is one of Canada’s leading omnichannel digital health companies. And while it initially grew in popularity during the pandemic for its digital health apps and telehealth businesses, today, it also operates the country’s largest network of outpatient clinics.

The company continues to demonstrate its ability to grow rapidly through acquisitions. In fact, WELL added 41 clinics in 2025 alone, reaching 252 nationwide, which was a 19% increase.

At the same time that it continues to focus on growing its patient services segment, though, WELL continues to provide tech solutions like electronic medical records, telemedicine, and AI-powered tools for physicians, which is why it’s one of the best growth stocks to buy in the highly defensive healthcare sector.

WELL’s impressive growth is hard to ignore

What’s most impressive about WELL is that it continues to translate its acquisitions into growth of both its revenue and profitability. And the more businesses and clinics WELL acquires, the better it can scale its costs.

For example, its third-quarter revenues in 2025 jumped 56% year over year to $365 million. Furthermore, its patient visits hit 4.3 million in 2025, a 37% increase for the full year.

In addition to the rapid increase in revenue, though, WELL is also improving its profitability. For example, its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) have reached record levels in recent quarters, with margins continuing to improve.

In addition to the compelling growth in its revenue and profitability, though, WELL also has more catalysts for a stock rally this year as it continues to look to sell off some of its non-core digital health assets and spin out WELLSTAR, its popular Software as a Service business.

Those non-core asset sales in the U.S. should bring in significant cash at attractive multiples that WELL can use to reinvest in higher-growth Canadian operations. And the planned spin-out of WELLSTAR in mid-2026 is expected by many analysts to unlock billions in value for shareholders, giving the stock a major re-rating catalyst.

So, it’s no surprise that all seven analysts covering WELL right now are giving it a buy rating. Furthermore, its average analyst target price of $7.29 is more than 85% higher than WELL’s share price at the time of writing.

So, if you’re looking for a high-quality Canadian stock that can rally rapidly through 2026 and beyond, there’s no question that WELL Health is a top pick.

Fool contributor Daniel Da Costa has positions in Well Health Technologies. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Investing

dividends grow over time
Dividend Stocks

$10,000 Invested at 8% for 20 Years Could Become $46,610

$10,000 doesn’t need perfect timing to become meaningful wealth — it mainly needs time and compounding.

Read more »

Partially complete jigsaw puzzle with scattered missing pieces
Dividend Stocks

How I’m Structuring My $7,000 TFSA for Steady Monthly Payouts

Learn the importance of structuring your portfolio to achieve steady payouts and minimize risk through smart diversification.

Read more »

holding coins in hand for the future
Dividend Stocks

The Best Canadian Dividend Stocks for Passive Income

Given their resilient business models, reliable cash flows, consistent dividend growth, and healthy growth prospects, these three dividend stocks are…

Read more »

Business success of growth metaverse finance and investment profit graph concept or development analysis progress chart on financial market achievement strategy background with increase hand diagram
Dividend Stocks

TFSA Strategy: Turn $25,000 Into $130 in Monthly Passive Income

This TFSA strategy invests $25,000 across two monthly REITs to generate approximately $130 in tax-free passive income every month.

Read more »

dividends grow over time
Dividend Stocks

2 Dividend Stocks to Lock-In Right Now for Long-Term Passive Income

These stocks are off their highs and pay attractive dividends.

Read more »

investor schemes to buy stocks before market notices them
Dividend Stocks

Here’s a 6.6% Dividend Stock Trading Near a 52-Week Low

This Canadian stock currently trades just 2% above its 52-week low while offering a juicy 6.6% annualized dividend yield.

Read more »

stocks climbing green bull market
Dividend Stocks

This 5%-Yielding Dividend Stock Could Turn $20,000 Into $95.64 a Month

$20,000 can turn into nearly $100 a month in dividends, but only if the cash flow behind the yield is…

Read more »

Investor wonders if it's safe to buy stocks now
Bank Stocks

Is BMO Stock Still a Good Buy in September 2026?

BMO stock has pulled back after a strong rally, but improving adjusted earnings, credit trends, and shareholder returns could keep…

Read more »