When it comes to finding a deal, it can be advantageous to look at the stocks that used to be strong — companies that have proven worthy once and are likely to do so again. This is why today, we’re going to look at two of them: goeasy (TSX:GSY) and WELL Health Technologies (TSX:WELL).
While both have had time in the sun, both have also fallen back significantly. Today, let’s look at whether that makes them undervalued or no longer so bright.
WELL Health
WELL Health Technologies’s strong financial performance, positive analyst ratings, and strategic growth initiatives make it a promising investment. The company’s ability to generate record revenues and substantial net income, coupled with its consistent earnings and favourable market sentiment, positions it as a worthwhile consideration for investors looking to capitalize on the growing digital health sector.
WELL Health Technologies demonstrated remarkable financial performance in 2024, making it a compelling investment opportunity. In the first quarter of 2024, WELL Health reported record revenues of $231.6 million, reflecting a 37% increase from the same period in 2023. The company also achieved a net income of $15.1 million, a significant turnaround from a net loss of $14.4 million in the previous year. This strong financial growth is indicative of WELL Health’s robust business model and successful expansion strategies.
Analysts have shown confidence in WELL Health’s future prospects, forecasting continued growth. The upcoming second-quarter (Q2) 2024 earnings report is expected to reflect further positive performance, with a projected earnings per share (EPS) of $0.06, matching last year’s earnings for the same quarter. This consistency in earnings, coupled with the company’s track record of beating market expectations, highlights its stability and growth potential.
What’s more, WELL Health’s growth strategy includes both organic expansion and strategic acquisitions. The company has successfully integrated multiple acquisitions, contributing to its impressive revenue growth. Additionally, WELL Health has been focusing on enhancing its digital health services, which aligns with the increasing demand for digital healthcare solutions. So, keep an eye on Aug. 8th earnings.
goeasy
Next up, we have goeasy, which presents a compelling investment case due to its strong financial performance, positive growth outlook, robust market position, and commitment to shareholder returns. Investors looking for a reliable and growing stock in the financial services sector should consider adding goeasy to their portfolios.
goeasy operates in the financial services sector, focusing on non-prime consumer lending through its easyfinancial and easyhome divisions. The company has a solid dividend history, recently increasing its annual dividend, demonstrating its commitment to returning value to shareholders.
The company has shown remarkable financial results in 2024, making it an attractive investment opportunity. In the first quarter of 2024, goeasy reported EPS of $3.83, surpassing the consensus estimate of $3.77. The company’s revenue for the quarter was $357.11 million, beating the forecast of $350.44 million. This consistent outperformance highlights goeasy’s strong operational efficiency and market position.
Analysts are optimistic about goeasy’s future, with an expected EPS of $4.08 for Q2 2024, significantly higher than the $3.28 reported in the same quarter last year. The company’s revenue is also projected to continue its upward trajectory, driven by robust loan originations and a growing loan portfolio. So, again, keep an eye on Aug. 7th earnings. They could make this stock soar back upwards.
