The S&P/TSX Index has rallied more than 75% in the last five years. This means that many stocks have done really well. Yet, there is a TSX stock that has not really made its move higher yet. But that’s okay, as I’ve learned early on that one of the biggest keys to successful investing is patience. And I’ve been patient. But today, I think its time has come.
Well Health Technologies Ltd. (TSX: WELL) is an omni channel digital healthcare company, with a network that includes primary, specialized, and diagnostic healthcare services and facilities.
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A growth stock to buy
The company has had a fantastic five years – consistent double-digit revenue growth and increasing profitability and cash flows. Revenue increased more than 360% to $1.4 billion in 2025. Also, adjusted earnings per share (EPS) was $0.50, up from a mere $0.05 in 2021.
Yet Well Health Technologies’ stock price has not fared so well in the last five years. In fact, it’s down 26%. This might worry some investors but one only needs to dig a little deeper to find out what’s going on with the company.
Back in the early 2020s, there was a lot of excitement over this TSX stock and its plan to revolutionize the Canadian healthcare sector. Bringing technological advancements to Canadian healthcare has been sorely needed for a long time. So, it’s not surprising that investors latched on to Well Health stock and sent it higher. But, as often happens, the rally of those years was a little too much, a little too soon. Well Health’s fundamentals needed to catch up to the stock price.
So, Well Health stock fell. But at the same time, its fundamentals have been steadily improving. Well Health’s most recent quarter, the first quarter of 2026, was another record, with revenue growth of 25%
The opportunity for this TSX stock
And here is the opportunity. In Well Health’s latest quarter, the company continued to grow at a rapid pace. Revenue increased 25% to $365 million and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 56% to $43.1 million. Finally, adjusted earnings per share (EPS) were $0.06 versus $0.03 in the same period last year.
For the full year 2026, Well Health stock is expecting normalized revenue growth of 15% to 22% and EBITDA of $175 million to $185 million. Well Health’s Canadian segment, which is the segment that includes the primary care business, is already surpassing management’s expectations for the year. According to a recent press release, Well Health has already reached its goal of $100 million in annualized revenue for Well Canada. This was driven by organic growth as well as two accretive acquisitions.
This means that Well’s official guidance will be adjusted upwards, with EBITDA expected to exceed $185 million. Well Health stock will update its guidance when the company releases its second quarter results in August.
The bottom line
Well Health is currently trading below 20 times this year’s expected earnings. Besides this attractive valuation, this TSX stock has many things on its side. This includes the fact that its growth consistently beats expectations, and that its profitability is rapidly rising. All of this makes Well Health stock one of the smartest TSX stocks to buy right now.
