Overview of the Canadian healthcare industry
The healthcare industry in Canada is diverse and multifaceted. Unlike the U.S., where large pharmaceutical companies dominate, Canada’s healthcare sector includes a variety of smaller, innovative companies. Healthcare facilities and pharmacies are evergreen businesses, but there are almost no general healthcare facilities under publicly listed companies in Canada. Most private pharmacy chains are consolidated under names like Metro. Pharmaceutical companies in Canada are also neither as large nor as well-known as their U.S. counterparts.
What are healthcare stocks?
Healthcare stocks in Canada are publicly traded companies that operate in various sectors of the healthcare industry. These sectors include:
- Pharmacies
- Telehealth
- Digital healthcare platforms
- Medical devices
- Medical facilities
- Senior and long-term care facilities
- Healthcare REITs
- Health insurance
A significant number of Canadian healthcare companies are involved in the innovation and advancement of medical technology. As the population ages and life expectancies rise, there is a growing demand for cutting-edge healthcare solutions.
How to choose healthcare stocks in Canada
Choosing healthcare stocks can be tricky due to the variety of sectors they operate in. It’s crucial to conduct thorough research and ensure you believe in the company’s vision and performance. Consider factors such as the company’s financial health, market position, and growth potential. Look at recent performance, management quality, and the overall industry trends.
Top Canadian medical stocks under $10
Here are five notable Canadian medical stocks under $10:
- Well Health Technologies (TSX:WELL)
Background: Well Health Technologies is a digital healthcare company that owns the largest chain of outpatient medical clinics in Canada. It also provides telehealth services and digital healthcare platforms.
Recent performance: The stock has shown resilience and growth potential, driven by its expanding digital health services. In the past month, WELL stock is up more than 41 per cent and has traded around C$7. - Cosciens Biopharma (TSX:CSCI)
Background: Cosciens Biopharma focuses on developing innovative pharmaceutical products. It is involved in various stages of drug development and commercialization.
Recent performance: The company has been making strides in its research and development, which has positively impacted its stock performance. In the past month, Cosciens stock has traded in the neighbourhood of C$2.60. - Dentalcorp (TSX:DNTL)
Background: Dentalcorp is one of the largest networks of dental clinics in Canada. It offers a range of dental services and has been expanding its footprint across the country.
Recent performance: The stock has been stable, with growth driven by acquisitions and an increasing number of clinics. Since the month began, Dentalcorp stock has traded as low as C$8.03 and as high as C$8.34. - Kneat.com (TSX:KSI)
Background: Kneat.com provides software solutions for the life sciences industry, focusing on validation and compliance processes.
Recent performance: The company has seen positive stock performance due to its innovative software solutions and growing client base. Its stock is up nearly 20 per cent on the month and reached as high as C$6.00. - CareRx (TSX:CRRX)
Background: CareRx is a leading provider of pharmacy services to seniors and long-term care facilities. It focuses on delivering personalized medication management solutions.
Recent performance: The stock has been performing well, supported by the growing demand for senior care services. CareRx stock is up more than 7 per cent since December began and has traded around C$2.00.
Honourable mention: Extendicare (TSX:EXE) – Clocking in at the C$10 limit, Extendicare stock has grown more than 45 per cent since the beginning of the year.
Extendicare provides care and services for seniors across Canada, including nursing care, home health care, retirement living, and management and consulting services. It operates through the following business segments: long-term care, home health care, and managed services.
How to buy healthcare stocks in Canada
The great thing about our list of the best healthcare stocks on the TSX is that they trade on any Canadian brokerage. Investors can buy these stocks through online brokerage accounts, financial advisors, or directly through the companies’ investor relations departments.
Downsides of healthcare stocks
Despite the potential benefits, there are some drawbacks to investing in healthcare stocks. The Canadian healthcare industry is highly regulated by both provincial and federal governments, which can impact a company’s financial performance. Additionally, legal ramifications can arise if products or services are ineffective or detrimental to health, leading to costly legal battles and negative investor sentiment.
Deepen due diligence
Investing in Canadian healthcare stocks under $10 is a unique way to tap into a diverse and innovative sector. However, it is essential to conduct thorough due diligence and stay informed about industry trends and regulatory changes. By understanding the risks and rewards, investors can make informed decisions and potentially benefit from the growth of the healthcare industry in Canada.
Join the discussion: Find out what everybody’s saying about these stocks on the Healthcare Bullboards, and check out the rest of Stockhouse’s stock forums and message boards.
The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
(Top image generated with AI.)
