Advertisement
Canada markets open in 3 hours 10 minutes
  • S&P/TSX

    21,807.37
    +98.97 (+0.46%)
     
  • S&P 500

    4,967.23
    -43.89 (-0.88%)
     
  • DOW

    37,986.40
    +211.00 (+0.56%)
     
  • CAD/USD

    0.7288
    +0.0013 (+0.17%)
     
  • CRUDE OIL

    82.81
    -0.33 (-0.40%)
     
  • Bitcoin CAD

    90,610.64
    +1,605.38 (+1.80%)
     
  • CMC Crypto 200

    1,422.62
    +16.62 (+1.18%)
     
  • GOLD FUTURES

    2,374.20
    -39.60 (-1.64%)
     
  • RUSSELL 2000

    1,947.66
    +4.70 (+0.24%)
     
  • 10-Yr Bond

    4.6150
    0.0000 (0.00%)
     
  • NASDAQ futures

    17,306.00
    +125.25 (+0.73%)
     
  • VOLATILITY

    18.22
    -0.49 (-2.62%)
     
  • FTSE

    8,008.13
    +112.28 (+1.42%)
     
  • NIKKEI 225

    37,438.61
    +370.26 (+1.00%)
     
  • CAD/EUR

    0.6840
    +0.0016 (+0.23%)
     

2 Healthcare Stocks You Can Buy and Hold for the Next Decade

healthcare pharma
Image source: Getty Images

Written by Amy Legate-Wolfe at The Motley Fool Canada

The last few years saw a surge in healthcare companies entering the market. The pandemic led to many opportunities and many failures. So, where can investors go to invest in what really should be a stable area of investment?

After all, we’re always going to need healthcare. We saw that during the pandemic. But the key will remain with companies that are staying innovated and providing essential services. With that in mind, these are the two I would pick up now and hold for the next decade.

Bausch Health

Bausch Health Companies (TSX:BHC) has gone through some major changes over the last few years. It sliced off another brand, and shares are now even on par with where they were a year before. Yet this could now offer investors an opportunity to get in on this stock while it’s in value territory.

ADVERTISEMENT

After all, shares are improving. Since October, shares have climbed almost 40%! Meanwhile, it still trades at just 0.38 times sales.  A lot of the recent growth comes from strong earnings, including a fourth-quarter and full-year report that was quite strong.

During the report, revenue was up 10% year over year. While the company still traded at a net loss of US$39 million, this was far less than the US$410 million in the fourth quarter of 2022. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) also climbed 6% to reach US$869 million.

Meanwhile, the diversified healthcare company is showing a future outlook that looks quite strong. Far stronger than what we’ve seen over the last few years. BHC stock not expects full-year 2024 revenue to hit between US$9.3 billion and US$9.55 billion, with organic growth between 2% and 5%. Further, it should reach adjusted EBITDA of between US$3.2 and US$3.35 billion for 2024 as well.

With a focus on cost-cutting and more innovation in the pipeline, the company looks well-positioned for future growth. This could be thanks to the chief executive officer (CEO) Thomas J. Appio, who has been with the company since 2010 but took over as CEO in 2022. Since then, he has put them on the right financial footing, with a strong focus on innovation, collaboration, and diversity in his leadership approach.

Knights Therapeutics

Another company that investors will certainly want to consider is Knights Therapeutics (TSX:GUD). The company currently has seen shares rise almost 9% in the last year alone. But again, since bottoming out in October, it’s climbed 27% in that time. Yet it still offers value as well, trading at about 1.82 times sales as of writing.

When we look at earnings, the company has also seen significant improvements. This includes revenue, which most recently was up 13% year over year to US$81.5 million. Net income also rose significantly, reaching US$9.59 million compared to just US$1.59 million in the third quarter of 2022. Adjusted EBITDA also rose 72%, reaching US$15.5 million.

As to the future, GUD stock expects to reach full-year 2023 revenue of between US$325 and US$335 million. It also expects to achieve an adjusted EBITDA of about 18% of revenue for the year as well. Clearly, the company is also similar to BHC stock. It is showing signs of improvement, and that looks to be well underway so far. Investors will especially like that it’s putting out more products and innovations to combat across a diverse range, from oncology and hematology to infectious diseases.

Altogether, these two companies look like strong options if you wish to catch them on their path upward in the healthcare sector.

The post 2 Healthcare Stocks You Can Buy and Hold for the Next Decade appeared first on The Motley Fool Canada.

Should you invest $1,000 in Bausch Health Companies right now?

Before you buy stock in Bausch Health Companies, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bausch Health Companies wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $17,988!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 35 percentage points since 2013*.

See the 10 stocks * Returns as of 1/24/24

More reading

Fool contributor Amy Legate-Wolfe 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.

2024