Today’s volatile market has many stocks that are trading well below pre-crash levels. At first glance, it looks like the market is inundated with offers! But beware. While many stocks could rebound in the next few months, those same stocks could crash in a number of scenarios.
The pandemic is still raging, the housing market is still inflated, a new presidency is coming in January. All of these things could turn most stocks around in the coming months. In other words, unless you invest in growth stocks like Docebo (TSX: DCBO), Goodfood Market (TSXFOOD), and WELL Health Technologies (TSX: GOOD).
Docebo provides a learning management system to companies around the world. It hit the market last year and has exploded with the pandemic. The company has provided the users with the means to train people all over the world. Now it doesn’t matter if your employees work from home or in Australia; you can train them all.
In the last quarter, annual recurring revenue increased 55% year over year. The company expects its profits to continue in this fashion for years to come, as the home work economy remains strong. Shareholders seem to agree, with stocks rising 256% last year alone. The company still has plenty of room to grow, with a market cap of $ 1.65 billion. So be careful that this stock skyrockets in the next few years.
Goodfood is another company making headway in the pandemic. This company saw demand soar at the start of the pandemic, opening facilities across Canada to meet the needs of the meal kit service. Even if people venture out again, society still sees the demand increase.
Revenue grew 256% year over year at the start of the pandemic, but even in the most recent quarter, it still grew 142.8% year over year. Economists believe the company should continue to increase its demand, as market capitalization is still only $ 554 million for a multibillion-dollar industry. All Goodfood has to do is see the successes of others around the world and do your own work to continue to grow. It’s already working, with stocks rising 183% last year alone!
Finally, WELL Health is on everyone’s radar given its use of virtual health care. The company brings together doctors, therapists, physiotherapists and nurses – you name it – and offers patients a way to connect virtually. Obviously, this was a lifeline during the pandemic, literally. You no longer have to risk going out, a doctor can meet you at your home to keep you safe.
The company had a record quarter recently, with a 50% year-over-year revenue increase for the quarter and a 70% year-over-year increase in gross margin. Equities have also risen to 392% in the last year alone! It is a business that will continue to increase its use for the foreseeable future and beyond. So if there is only one stock you buy today, I would choose WELL Health.
Crazy contributor Amy Legate-Wolfe owns shares in Goodfood Market. The Motley Fool recommends Goodfood Market.