Shares of digital healthcare services provider WELL Health (TSE:WELL) spiked amid the pandemic. However, economic reopening and an uncertain economic environment dragged its stock down. This penny stock has corrected over 60% from its 52-week high. However, WELL Health continues to deliver stellar growth, implying that the selloff in its stock is unwarranted. Moreover, WELL stock has significant upside potential (based on analysts’ price target), which supports the bull case.
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Here’s What Makes WELL Stock Attractive
As stated above, WELL Health continues to deliver strong financial numbers on the back of the continued increase in omnichannel patient visits and benefits from acquisitions. Further, its U.S.-based virtual services businesses are growing rapidly, which supports its overall growth.
WELL Health’s revenues are growing fast. In Q2, its top line recorded an increase of 127% year-over-year. Further, the company has been consistently posting positive adjusted EBITDA. In Q2, its adjusted EBITDA more than doubled.
WELL’s management remains upbeat and expects the momentum in its business to sustain. Recently, the company announced that its U.S.-based virtual services businesses recorded 124% organic growth in Q3. Further, WELL Health has turned profitable on an adjusted net income basis and expects to be profitable for the full year.
While its business is growing rapidly, its stock is trading at a significant discount, making it attractive at the current price levels.
Is Well Health Stock a Buy?
On TipRanks, WELL stock has a Strong Buy consensus rating based on seven unanimous Buy recommendations. Moreover, analysts’ average price target of C$8.60 implies 201.8% upside potential.
While WELL stock has a positive signal from analysts, insiders sold WELL Health stock worth C$662.9K last quarter. Overall, WELL stock scores a seven out of 10 on TipRanks’ Smart Scoring system, implying it could perform in line with broader market averages.
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