In rare circumstances, investors can hit the big time. They find a stock that multiplies over and over again from when they first purchased it. This is where the phrase “multi-bagger” comes from — bagging multiple returns over several years.
When it comes to long-term investing, you could seriously increase your chances of this happening. Even a bank stock can increase multiple times if you hold it for 20 years. But for a few companies, this can happen a lot sooner. What you need to look for are companies that create a necessity in today’s world, ride a general curve, or have a huge market. Sometimes, you can hit all three of these areas at once!
That’s why today I’m focusing in on the health care sector. This industry has, of course, seen a huge increase in demand with the pandemic. But not just in one area of the health care. Now, we need new ways of receiving care, new properties to provide care, and we need it immediately! That’s why I would recommend top stocks like NorthWest Healthcare Properties REIT (TSX:NWH.UN), CloudMD Software & Services Inc. (TSXV:DOC) and WELL Health Technologies Corp. (TSX:WELL). While all three are young stocks now, years from now each could see incredible returns multiple times over.
NorthWest Healthcare NorthWest Healthcare has 189 properties in five countries, each producing income at massive rates. While other REITs struggle for occupancy, Northwest has seen occupancy reach an unheard of 99% as of the latest earnings report. Its revenue has therefore come in strong at a 10.8% increase year over year, and the company expects things to continue in this vain.
NorthWest has a five-year return of 94% as of writing for a five-year compound annual growth rate (CAGR) of 14.16%. With more investment in healthcare likely after this pandemic, you should expect the company to enter acquisition mode an take on even more income-producing properties. If you had $1,000 in this company five years ago, today it would be worth $1,437.50, which could very well happen again in another five.
CloudMD CloudMD is another company providing a new necessity — virtual doctors. Not just doctors, but nurses, residents, and really any other health care worker you can think of. The company has been acquiring company after company that provides virtual assistance, most recently entering mental health as well. With people at home staying away from the virus, virtual doctors have been a new necessity that many will likely want to keep on when the world returns to the new normal.
The company is new, but shares have already been increased a whopping 785% in the last year! But that’s with a share price under $3. It’s clear that as the company grows, shares will soar along with it. It’s now made a profit, and currently buying back shares. So buy this company now and hold on tight for decades to see a $1,000 potentially double again and again and again. A $1,000 investment this time last year would be worth $8,111 today!
WELL Health Similarly to CloudMD, WELL Health aims to consolidate and modernize the way medicine is practiced. By providing digital services across multiple medical fields, physicians and patients alike can receive the care they need now. The company has also been acquiring businesses to become a force to be reckoned with, most recently with a physiotherapy business.
Like CloudMD, in the last year shares have gone nuts, growing 436% as of writing. Any market volatility that brings the stock down could provide the perfect opportunity to buy a stake and watch it increase the world over. A $1,000 investment in WELL Health this time last year would be worth an incredible $5,133 today!
The post Got $3,000? 3 Soaring Stocks With Multi-Bagger Potential appeared first on The Motley Fool Canada.
Fool contributor Amy Legate-Wolfe owns shares of NORTHWEST HEALTHCARE PPTYS REIT UNITS. The Motley Fool recommends NORTHWEST HEALTHCARE PPTYS REIT UNITS.
The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool Canada’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Motley Fool Canada 2020
This Article Was First Published on The Motley Fool
