3 Health Stocks Surging This Month

Let’s dive into why these health stocks are standing out.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published November 13, 2024 4:20 pm EST

| More on: JWELSIAWELL

Health stocks are lighting up this month, and for good reason! The latest earnings, strategic moves, and the growing demand for health and wellness services have contributed to this rise. But there are some that are doing even better than the rest. Today, let’s dive into why these stocks are standing out.

doctor uses telehealth — Source: Getty Images

WELL Health

WELL Health Technologies (TSX:WELL) has had an impressive quarter, posting a 23% revenue increase from the same period last year, hitting $251.7 million. Despite this, it faced a net loss of $81.2 million, which didn’t seem to dampen investor enthusiasm.

With a focus on acquiring digital health assets and expanding its telehealth reach, Well Health stock is positioning itself at the intersection of healthcare and tech, a sweet spot as demand for digital health services continues to grow. The market is optimistic about the future, expecting Well Health’s revenue to grow at 8.7% annually over the next three years. Close to the 9.3% growth forecast for the broader healthcare sector.

For Well Health stock, the future looks promising as the company leverages its digital assets and telehealth capabilities to tap into Canada’s increasingly tech-savvy healthcare landscape. Its strategy aligns with a growing trend in digital health, making it a potentially strong player in a market hungry for innovative health solutions. Investors are hopeful that Well Health stock’s extensive reach in digital health will secure long-term gains, even as the company works to address profitability challenges.

Jamieson Wellness

Jamieson Wellness (TSX:JWEL) has also made waves with its latest earnings. The company reported a 20% branded revenue growth, reflecting continued consumer interest in wellness and preventative health products. Jamieson’s latest quarter set new records, with revenues spurred by a strong marketing push and significant investments in key markets like China.

The company has also launched an integrated advertising campaign in Canada, reminding consumers of its 102-year legacy in health and wellness. Looking forward, Jamieson is betting on international expansion. This is expected to drive sustained growth in the upcoming quarters.

Jamieson Wellness is riding a global wave of health consciousness. The company’s record third-quarter performance, combined with its expanded presence in the U.S. and China, showcases its resilience and adaptability. With the success of its youtheory brand and plans for more international campaigns, Jamieson seems well-positioned to capture a substantial share of the global wellness market.

Sienna

Meanwhile, Sienna Senior Living (TSX:SIA) is capitalizing on the growing demand for senior care services. Boosted by its recent acquisition of four continuing care homes in Alberta. This move adds 540 suites to Sienna’s portfolio and marks the company’s entry into Alberta’s senior housing market.

The Alberta portfolio acquisition, expected to bring in an investment yield of about 6.5% during its first year, positions Sienna for further expansion in one of Canada’s fastest-growing regions. With high occupancy rates in three of the four properties, Sienna’s growth strategy is clearly aligned with demand, and investors have taken notice.

Sienna’s recent Alberta acquisition is a testament to its commitment to meeting the needs of Canada’s aging population. This acquisition not only strengthens Sienna’s portfolio but also reflects a strategic focus on regions with favourable supply-demand dynamics for senior living spaces. Investors are excited about Sienna’s expansion strategy, as the acquisition was made at a discount to replacement value. Providing a strong base for future returns.

Bottom line

Well Health stock, Jamieson Wellness stock, and Sienna Senior Living stock all benefit from unique strategies. Each caters to growing health demands. The companies are not only growing in size but also adapting to meet the changing needs of consumers, whether from digital health solutions to wellness products and senior care. For investors, these companies’ forward-thinking strategies signal promising opportunities in the health sector. Whether you’re drawn to digital health, preventative wellness, or senior living, these stocks are certainly ones to watch.