Healthcare was one of the most coveted sectors during the pandemic. It was one of the few occasions in recent history when investor focus around the globe fell to this relatively unexciting niche. And even though the pandemic is long behind us, there are several healthcare stocks that are still worth buying, and three of them should be on your October shortlist.
A healthcare-tech stock
With one foot in each sector, WELL Health Technologies (TSX:WELL) gets to ride in two boats at once. And though the stock is still worth considering, especially compared to others in the healthcare sector, it would have been an incredibly amazing buy a few years ago. If you had bought into the company when it started trading on the TSX and was available for less than a dollar per share, you would have grown your capital by almost 6,100% right now.
And it’s after a 22.2% drop from its 2021 peak. Unlike other healthcare-tech stocks that are focused more on research, this company is created around a service. Electronic medical records and telemedicine are two of the company’s core focuses, and since these two areas of medicine are expected to see a boom in the coming years, especially telemedicine, the company might still have a lot of growth to give.
A wellness company
If you are looking for more conventional growth numbers and a sprinkle of dividends, Jamieson Wellness (TSX:JWEL) might be more to your liking. The company has a modest three-year CAGR of 12.6% and offers a modest 1.65% yield. And even though the stock is discounted compared to its 2020 peak (15%), it’s still a bit overvalued.
But it has a few strengths that make it a healthcare stock worth considering for your portfolio. It’s the number one consumer health brand in the country, giving it a leadership role within its healthcare niche. It has a diverse and well-known range of brands under its banner and an extensive range of products, including beauty, vitamins, supplements, and hormone balancers.
A venture capital healthcare stock
Hamilton Thorne (TSXV:HTL) is another healthcare stock that overlaps quite heavily with technology, albeit its focus is on research and diagnosis rather than healthcare services and delivery. It’s a leader in the niche of advanced lasers (used in medical diagnostics tools) and computer-aided sperm analysis (CASA).
And this small U.S.-based company hasn’t just penetrated deep into this niche healthcare company; it has also created a very stable and reliable revenue stream. It makes the bulk of its revenue selling the consumables and maintenance items associated with its products, which is a relatively stable market. It offers an impressive 10-year CAGR of 29%, albeit with an expensive price tag.
The healthcare sector as a whole is going through a bear market phase. It has resulted in a lot of interesting and potentially explosive stocks currently trading at relatively discounted prices (but at high valuations). The three healthcare stocks have amazing growth potential, and you might consider holding on to them for the long term to get the most out of their return potential.