Written by Chris MacDonald at The Motley Fool Canada

In the rapidly evolving healthcare industry, WELL Health Technologies (TSX:WELL) is one of the prominent Telehealth companies in Canada and the United States. WELL offers digital healthcare innovations that make healthcare accessible, more efficient, and with quality service provision through technology.

Although I have been quite conservative when discussing WELL stock in the past, here are a few reasons why investors may want to consider this company.

It’s all about growth

In the telehealth space, investors may not be surprised to hear that growth is abundant. Patients are looking for innovative solutions to being seen by their doctors, and with wait times and patient access metrics deteriorating in past decades, one could argue that the sort of services WELL provides can make the world a better place.

It does appear the overall marketplace thinks so. The company’s strong revenue growth in past quarters is a combination of organic growth within its existing groups, as well as a robust acquisition strategy. WELL has undertaken a strategic mission of acquiring a range of high-quality digital health and telemedicine assets. Some notable companies that fit into the category include CRH Medical, MyHealth Partners, and WISP entities that expand WELL’s capabilities across a gamut of healthcare services.

These acquisitions have bolstered the company’s financials, with double-digit revenue growth seen across its business lines in recent quarters. Much of this growth has indeed come via its acquisitions, so as long as the company can continue to pay the right price for these deals, this is a stock I think could be worth considering here.

Recurring revenue model is worth looking at

Revenue growth is one thing, but how that revenue comes in also matters. In the case of WELL Health, the company’s recurring revenue streams provide investors with added stability. These stable subi style="display:none;"ion-based revenues, particularly seen in the company’s EMR services and telehealth platforms, improve the company’s cash flow predictability, creating a robust base for long-term growth when the company scales up its operation.

With stable recurring revenue, WELL is in a better position to face market fluctuations and can focus its attention on reinvesting in its growth strategy. Furthermore, the firm’s ability to generate solid cash flows indicates to the outside world its potential to maintain and enhance its operations.

Long-term potential of the telemedicine sector

Telemedicine is a long-term shift rather than a trend stirred up by the pandemic. WELL Health’s virtual care solutions include phone and video consultations, remote monitoring, and digital referrals. In addition, all these are in an excellent position to capture the long-term growth of the telemedicine industry.