This Growth Stock Could 10X in 10 Years

The S&P/TSX Capped Health Care Index fell 1% to close out the trading session on Thursday, September 21. This index has been hit hard by volatility in the first half of this decade, largely due to its exposure to the reeling cannabis space. Indeed, investors should be looking to healthcare stocks in the 2020s. Aging demographics, medical advances, and technological development are leading to huge growth in the healthcare space.

Today, I want to sidestep the broader negativity and look at a Canadian growth stock that could see its value multiply by 10 over the next decade. Let’s dive in!

How has this growth stock performed over the past year?

WELL Health Technologies (TSX:WELL) is the growth stock that I’m targeting to start the autumn season. This practitioner-focused digital health company is based in Vancouver and operates in Canada, the United States, and around the world. Shares of this growth stock have increased 1.1% month over month as of close on Thursday, September 21. The stock has surged 54% so far in 2023.

Investors who want to see more of its recent and past performance can toggle the interactive price chart below.

Why you should be excited about the future of telehealth

The COVID-19 pandemic fundamentally changed services that traditionally required face-to-face communication. In the medical field, this led to a sharp rise in the use of telehealth services. Telehealth is health care that is provided remotely to a patient through digital communication. These services saw a sharp rise during the COVID-19 pandemic. While the end of the pandemic saw a turn back to face-to-face services, this does not mean that telehealth usage will go away. On the contrary, the rise of telehealth could allow for an easier way to serve patients as hospitals and family doctors are overwhelmed by demand.

Grand View Research recently valued the global telehealth market at US$83.5 billion in 2022. The same report projects that this market will deliver a compound annual growth rate (CAGR) of 24% from 2023 through to 2030. Fortune Business Insights also projected that the global telehealth market would achieve a CAGR of 19% from 2023 to 2030. It valued the 2022 market at US$128 billion and expects it to grow to US$504 billion by the end of the forecast period.

Should investors be happy with WELL Health’s recent earnings?

This company released its second-quarter (Q2) fiscal 2023 earnings on August 10. WELL Health achieved record quarterly revenues of $170 million. That marks the 18th straight quarter that the company had posted record revenues.

EBITDA stands for earnings before interest, taxes, depreciation, and amortization, aiming to give a clearer picture of a company’s profitability. WELL Health achieved record adjusted EBITDA of $27.8 million in Q2 2023. The company also surpassed one million patient visits in the quarter for the first time. This strong quarter inspired WELL Health to bolster its guidance. It now expects total revenue between $740 million and $760 million.

Here’s why I’m stacking shares of this growth stock right now!

Shares of this growth stock are trading in favourable value territory compared to its industry peers at the time of this writing. Better yet, WELL Health is on track for phenomenal earnings growth in the quarters and years ahead. Investors should be eager to seek exposure to the telehealth space in 2023 and beyond. It is not too late to snatch up many shares of WELL Health.

The post This Growth Stock Could 10X in 10 Years appeared first on The Motley Fool Canada.

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Fool contributor Ambrose O’Callaghan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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