Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

3 Healthcare Stocks I’d Buy in August

Published 2021-08-03, 05:30 p/m
Updated 2021-08-03, 05:45 p/m
3 Healthcare Stocks I’d Buy in August

3 Healthcare Stocks I’d Buy in August

The healthcare sector has faced major challenges during the COVID-19 pandemic. However, the crisis has also led to major growth for companies that serviced the demands that came out of the pandemic. Today, I want to look at three healthcare stocks that are worth snatching up in the beginning of August. Let’s jump in.

Why this healthcare stock soared since early 2020 Just over a year ago today, I’d discussed why Canadian investors should get in on the telehealth boom. The COVID-19 pandemic forced healthcare professionals to be creative in servicing their patients. Telehealth is the use of digital communications to provide these services.

WELL Health (TSX:WELL) owns and operates a portfolio of primary healthcare facilities in North America. Shares of this healthcare stock have dropped 7.1% in 2021 as of early afternoon trading on August 3. However, the stock is still up nearly 80% in the year-over-year period.

Investors can expect to see WELL Health’s next batch of results in early August. In Q1 2021, the company delivered record quarterly revenue growth of 150% to $25.6 million. Meanwhile, it posted its second straight quarter of positive adjusted EBITDA. This is a healthcare stock that investors should look to hold for the long term.

Don’t sleep on VieMed Healthcare ahead of earnings VieMed Healthcare (TSX:VMD)(NASDAQ:VMD) is another healthcare stock that attracted significant interest during the early days of the COVID-19 pandemic. Last June, I’d discussed its meteoric rise in these conditions. The company provides in-home durable medical equipment and post-acute respiratory healthcare services to patients in North America. Its focus on respiratory illnesses and role as a supplier of ventilators made its services essential during the crisis.

Shares of VieMed have plunged 16% in the year-to-date period. The stock has plunged 43% year over year. This company is also set to unveil its second-quarter 2021 results in the days ahead. In Q1 2021, VieMed posted revenue growth of 12% to $25.5 million. Meanwhile, adjusted EBITDA slid 31% to $5.5 million.

VieMed’s boost from the pandemic has waned, but it is still a healthcare stock worth buying. Its shares last had a favourable price-to-earnings ratio of 9.5. This stock is worth adding as it hovers around a 52-week low.

One more healthcare stock that is well-positioned for big growth Savaria (TSX:SIS) is the third and final healthcare stock I want to focus on today. This company provides accessibility solutions for the elderly and physically challenged individuals in Canada and around the world. The global personal mobility devices market is geared up for big growth over the course of this decade, bolstered by aging demographics. Shares of this healthcare stock have climbed 43% so far this year.

Investors can also expect to see this company’s Q2 2021 results in early August. In the first quarter of 2021, Savaria achieved revenue growth of 26.8% to $112 million. Gross profit surged 29.2% to $38.9 million. Moreover, adjusted net earnings rose 10.5% year over year to $7.9 million or $0.14 per share.

This healthcare stock is still trading in favourable territory relative to industry peers. It offers a monthly dividend of $0.04 per share, which represents a 2.3% yield.

The post 3 Healthcare Stocks I’d Buy in August appeared first on The Motley Fool Canada.

Fool contributor Ambrose O'Callaghan has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Viemed Healthcare Inc. The Motley Fool recommends Savaria Corp.

This Article Was First Published on The Motley Fool

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.