1 Canadian Stock Down 42% to Buy and Hold Forever

This health tech stock is trading at a discount as it continues to grow and expand a business very much in demand.

Karen Thomas, MSc, CFA

Karen is a stock market enthusiast focused on uncovering those stocks that she believes the market has mispriced. She does this through fundamental and quantitative analysis of companies and their industries, as well as a study of future opportunities and trends. She holds a Masters degree in Finance, the CFA designation, and has over 20 years of experience in the investment management industry. Having worked at a major pension fund, as well as two leading mutual fund firms as an analyst and portfolio manager, she has solid investing expertise which she aims to share with her readers.

Published October 16, 8:30 pm EDT

There are plenty of Canadian stocks that continue to perform well on the TSX. In this article, I’d like to discuss one that has not been performing so well, despite a strong thesis for the underlying business.

Well Health Technologies Corp. (TSX: WELL) has been hard at work digitizing the Canadian healthcare industry. It’s a transformation that’s been sorely needed, and one that’s creating tons of value for doctors and patients alike. So why is Well Health Technologies’ stock price still stuck below $5?

telehealth stocks — Image source: Getty Images

What is this Canadian stock all about?

Well Health is an omnichannel digital healthcare company that has the largest outpatient medical clinic network in Canada. This network consists of primary, specialized, and diagnostic healthcare services and facilities. These facilities use Well Health’s technology solutions to enhance productivity, profitability and patient care.

But Well Health’s offering doesn’t stop there. Even healthcare providers who don’t choose to join Well Health’s clinic network can still purchase its technology solutions. These solutions include electronic medical records (EMR) platforms and services, digital booking, and e-referrals.

In short, Well Health Technologies is modernizing and digitizing the Canadian healthcare system, and the rapid growth of the company is evidence that this is very much in demand.

Well Health financials

This Canadian stock has been rapidly growing for quite a few years now. In fact, 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.

Also, Well Health’s latest quarterly results came in strong once again. Although revenue growth was slower, at 12%, the company closed two acquisitions in the quarter, which will help increase future growth rates. In fact, the business continues to compound and the company was seeing a return of stronger momentum in the back end of the second quarter.

A key takeaway from the quarter is the company raised its revenue and earnings guidance once again. The new 2026 revenue guidance is now between $1.58 billion to $1.65 billion. And the new 2026 adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance is now between $185 million and $195 million.

A Canadian stock to hold forever

While the recent quarter posted record patient visits and strong additions to its clinic network, the earnings results were not as impressive. In fact, earnings per share (EPS) came in at $0.04, down from $0.10 in the same period last year. This was due to higher interest expense and acquisition costs.

Digitizing the Canadian healthcare system takes time and investment. This is a long process, but Well Health continues to grow and expand as its offering is very much in demand. Looking ahead, I expect Well Health to continue to drive profitability and revenue. While the stock is down 42% from its recent highs, it’s still a strong long-term buy, in my view.