{"id":177857,"date":"2020-07-08T00:58:46","date_gmt":"2020-07-08T00:58:46","guid":{"rendered":"https:\/\/stockchase.com\/discover\/?p=177857"},"modified":"2020-07-08T15:23:32","modified_gmt":"2020-07-08T15:23:32","slug":"canadian-healthcare-stocks","status":"publish","type":"post","link":"https:\/\/stockchase.com\/discover\/canadian-healthcare-stocks\/","title":{"rendered":"Top 4 Canadian Healthcare Stocks Catapult by the Worldwide Aging Demographic"},"content":{"rendered":"<p lang=\"en-CA\">For obvious reasons, the healthcare stocks are front and centre for investors these days. Even before the pandemic, the aging demographic around the world was another catalyst for growth in these Canadian healthcare stocks to buy.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Discover What&#039;s Inside<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/stockchase.com\/discover\/canadian-healthcare-stocks\/#All_eyes_on_COVID_treatment_and_vaccine_healthcare_stocks\" >All eyes on COVID treatment and vaccine healthcare stocks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/stockchase.com\/discover\/canadian-healthcare-stocks\/#A_look_at_Canadian_Healthcare_Stocks_small_cap\" >A look at Canadian Healthcare Stocks (small cap)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/stockchase.com\/discover\/canadian-healthcare-stocks\/#Healthcare_Stocks_1_Protech_Home_Medical_PTQ-X\" >Healthcare Stocks #1: Protech Home Medical (PTQ-X)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/stockchase.com\/discover\/canadian-healthcare-stocks\/#Healthcare_Stocks_2_Viemed_Healthcare_VMD-T\" >Healthcare Stocks #2 Viemed Healthcare (VMD-T)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/stockchase.com\/discover\/canadian-healthcare-stocks\/#Healthcare_Stocks_3_CareRx_Corporation_formerly_Centric_Health_CHH-T\" >Healthcare Stocks #3 CareRx Corporation (formerly Centric Health) (CHH-T)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/stockchase.com\/discover\/canadian-healthcare-stocks\/#Healthcare_Stocks_4_Aphria_APHA-T\" >Healthcare Stocks #4 Aphria (APHA-T)<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"All_eyes_on_COVID_treatment_and_vaccine_healthcare_stocks\"><\/span>All eyes on COVID treatment and vaccine healthcare stocks<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p lang=\"en-CA\">Normally in a U.S. election year, drugmaking stocks come under fire from both political parties for overcharging (with reasonable justification) their medicines, but in 2020 these attacks may become muted, perhaps absent, because all eyes are on these same companies to produce an effective COVID treatment and vaccine.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"A_look_at_Canadian_Healthcare_Stocks_small_cap\"><\/span>A look at Canadian Healthcare Stocks (small cap)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p lang=\"en-CA\">This week we look at opportunities in some health stocks, mostly smaller caps, to keep your portfolio healthy.<\/p>\n<p lang=\"en-CA\"><img decoding=\"async\" class=\"alignnone size-medium wp-image-178079\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2020\/07\/PTQ-X-1-760x254.png\" alt=\"Healthcare Stocks #1: Protech Home Medical\" width=\"860\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Healthcare_Stocks_1_Protech_Home_Medical_PTQ-X\"><\/span>Healthcare Stocks #1: Protech Home Medical (PTQ-X)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img alt=\"PTQ-X stock price chart\" decoding=\"async\" src=\"https:\/\/data.wealthica.com\/api\/securities\/PTQ-X\/chart?labels=tru\" width=\"125\" align=\"right\" \/>This small cap of $128 million trades on the Venture though it&#8217;s based in Kentucky. The company supplies medical equipment to American homes across 10 states from 40 locations. <a href=\"https:\/\/stockchase.com\/company\/view\/5966\/PTQ-X\">PTQ<\/a> supplies ventilators and CPAP machines to treat sleep apnea and other respiratory conditions. Needless to explain, there&#8217;s been strong demand for such equipment. The pandemic has pushed the stock to new highs, peaking in late-May at $1.35, but <a href=\"https:\/\/stockchase.com\/company\/view\/5966\/PTQ-X\">Protech<\/a> has shown staying power to hover around these levels and its price target is twice as high as its current $1.12 share price.<\/p>\n<p lang=\"en-CA\">However, until the pandemic this stock had been languishing. Witness its -82% five-year return. In contrast, its one-year return is 49%. <a href=\"https:\/\/stockchase.com\/company\/view\/5966\/PTQ-X\">PTQ<\/a>&#8216;s profit margin stands at 24.39% and its forward PE is 28x. Analyst <a href=\"https:\/\/stockchase.com\/expert\/view\/1349\/Bruce-Campbell-2\">Bruce Campbell<\/a> (of Stone Castle Investment) champions <a href=\"https:\/\/stockchase.com\/company\/view\/5966\/PTQ-X\">PTQ<\/a> for its 68% recurring revenues and the likelihood of getting taken out in the next year or so.<\/p>\n<p>The company grows organically and through acquisition. <a href=\"https:\/\/stockchase.com\/expert\/view\/28\/Robert-McWhirter\">Robert McWhirter<\/a> adds that <a href=\"https:\/\/stockchase.com\/company\/view\/5966\/PTQ-X\">Protech<\/a> can cover its debt and grow 133%.<\/p>\n<p lang=\"en-CA\">One caveat is that <a href=\"https:\/\/stockchase.com\/company\/view\/5966\/PTQ-X\">Protech<\/a> does not pay a dividend, so income investors may take a pass.<\/p>\n<p lang=\"en-CA\"><img decoding=\"async\" class=\"alignnone size-medium wp-image-178077\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2020\/07\/VMD-T-1-760x254.png\" alt=\"Healthcare Stocks #2 Viemed Healthcare\" width=\"860\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Healthcare_Stocks_2_Viemed_Healthcare_VMD-T\"><\/span>Healthcare Stocks #2 Viemed Healthcare (VMD-T)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img alt=\"VMD-T stock price chart\" decoding=\"async\" src=\"https:\/\/data.wealthica.com\/api\/securities\/VMD-T\/chart?labels=tru\" width=\"125\" align=\"right\" \/>A peer of <a href=\"https:\/\/stockchase.com\/company\/view\/5966\/PTQ-X\">Protech<\/a>&#8216;s, <a href=\"https:\/\/stockchase.com\/company\/view\/5836\/VMD-T\">Viemed<\/a> is another American small cap ($494 million) that supplies respiratory equipment and services to U.S. homes. <a href=\"https:\/\/stockchase.com\/company\/view\/5836\/VMD-T\">Viemed<\/a> benefits from the same tailwinds. <a href=\"https:\/\/stockchase.com\/expert\/view\/28\/Robert-McWhirter\">McWhirter<\/a> expects earnings to grow at least 75% this year and another 15% in 2021.<\/p>\n<p><span lang=\"en-CA\">Also, he predicts its free cash flow will double in this time. <a href=\"https:\/\/stockchase.com\/expert\/view\/1349\/Bruce-Campbell-2\">Campbell<\/a> also recommends this stock, which could be a take-out target down the road. <a href=\"https:\/\/stockchase.com\/company\/view\/5836\/VMD-T\">Viemed<\/a> now trades on the TSX as well as Nasdaq, though neither pays a dividend, so income investors are out of luck again. Revenue growth stands at a robust 48% and the stock boasts a 41.82% one-year return. Head-to-head against <a href=\"https:\/\/stockchase.com\/company\/view\/5966\/PTQ-X\">Protech<\/a>, <a href=\"https:\/\/stockchase.com\/company\/view\/5836\/VMD-T\">Viemed<\/a> trades at a lower future PE of 17x and its chart outperforms its competitor easily year-to-date at 63% vs. 15%, though the gap is narrower over the last three months. <\/span><\/p>\n<p>The big reason for <a href=\"https:\/\/stockchase.com\/company\/view\/5836\/VMD-T\">VMD<\/a>&#8216;s outperformance lies with the stock joining the <span style=\"color: #000080;\"><span lang=\"zxx\"><u><a href=\"https:\/\/finance.yahoo.com\/news\/viemed-healthcare-join-russell-3000-120010066.html\" target=\"_blank\" rel=\"noopener\"><span lang=\"en-CA\">Russell 3000<\/span><\/a><\/u><\/span><\/span><span lang=\"en-CA\"> in late June. In fact over that time, <a href=\"https:\/\/stockchase.com\/company\/view\/5836\/VMD-T\">Viemed<\/a> popped $3 higher than current levels, but has since returned to pre-announcement levels. <\/span><\/p>\n<p><span lang=\"en-CA\">In the past week, <a href=\"https:\/\/stockchase.com\/company\/view\/5836\/VMD-T\">Viemed<\/a> has been trending modestly higher and enjoying higher lows. Both stocks are decent bets with positive outlooks, but <a href=\"https:\/\/stockchase.com\/company\/view\/5836\/VMD-T\">Viemed<\/a> offers a lower PE.<\/span><\/p>\n<p><img decoding=\"async\" class=\"alignnone size-medium wp-image-178080\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2020\/07\/CHH-T-1-760x254.png\" alt=\"Healthcare Stocks #3 CareRx Corporation (formerly Centric Health)\" width=\"860\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Healthcare_Stocks_3_CareRx_Corporation_formerly_Centric_Health_CHH-T\"><\/span>Healthcare Stocks #3 CareRx Corporation (formerly Centric Health) (CHH-T)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img alt=\"CHH-T stock price chart\" decoding=\"async\" src=\"https:\/\/data.wealthica.com\/api\/securities\/CHH-T\/chart?labels=tru\" width=\"125\" align=\"right\" \/>Like <a href=\"https:\/\/stockchase.com\/company\/view\/5836\/VMD-T\">Viemed<\/a>, this Toronto-based small cap was struggling until COVID came along. <span style=\"color: #000080;\"><span lang=\"zxx\"><u><a href=\"https:\/\/finance.yahoo.com\/news\/centric-health-changes-name-carerx-210000682.html\" target=\"_blank\" rel=\"noopener\"><span lang=\"en-CA\">Recently renamed from Centric Health<\/span><\/a><\/u><\/span><\/span><span lang=\"en-CA\">, <a href=\"https:\/\/stockchase.com\/company\/view\/4289\/CHH-T\">CareRx<\/a> operates pharmacies in 850 LTCs (long-term care homes) to serve 50,000 seniors in B.C., Alberta and Ontario. Last year, to pay off heavy debt <a href=\"https:\/\/stockchase.com\/company\/view\/4289\/CHH-T\">Centric<\/a> sold its surgery clinics in Ontario and B.C., but shareholders punished the company for not garnering a higher price.<\/span><\/p>\n<p><span lang=\"en-CA\">However, a new CEO has cut costs and increased margins, and is throwing his weight behind building the company&#8217;s core business of supplying meds to LTCs. In its <\/span><span style=\"color: #000080;\"><span lang=\"zxx\"><u><a href=\"https:\/\/www.cantechletter.com\/2020\/05\/centric-health-gets-price-target-bumped-up-at-echelon\/\" target=\"_blank\" rel=\"noopener\"><span lang=\"en-CA\">Q1 report<\/span><\/a><\/u><\/span><\/span><span lang=\"en-CA\"> released in May, the CEO reported that the pandemic had \u201cno material effect\u201d on financial performance. In fact, revenue was up 3% and adjusted EBITDA rose 10.2% YOY, though it declined from the previous quarter. <\/span><\/p>\n<p>The CEO blamed weak seasonality, and Bay Street agreed. In fact, one analyst hiked his price target from 25 cents to 35. Another, <a href=\"https:\/\/stockchase.com\/expert\/view\/1344\/Stephen-Takacsy-B-Eng-MBA\">Stephen Takacsy<\/a>, hopes that <a href=\"https:\/\/stockchase.com\/company\/view\/4289\/CHH-T\">CareRx\/Centric<\/a> continues to make accretive acquisitions like the <span style=\"color: #000080;\"><span lang=\"zxx\"><u><a href=\"https:\/\/www.newswire.ca\/news-releases\/centric-health-completes-42-million-debt-refinancing-855227684.html\" target=\"_blank\" rel=\"noopener\"><span lang=\"en-CA\">one in March<\/span><\/a><\/u><\/span><\/span><span lang=\"en-CA\"> when the company also secured debt financing. <\/span><\/p>\n<p><span lang=\"en-CA\">Having survived the worst of the lockdown, paying down debt and enjoying demographic tailwinds, <a href=\"https:\/\/stockchase.com\/company\/view\/4289\/CHH-T\">CareRx<\/a> is moving in the right direction.<\/span><\/p>\n<p><img decoding=\"async\" class=\"alignnone size-medium wp-image-178081\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2020\/07\/APHA-T-1-760x254.jpg\" alt=\"Healthcare Stocks #4 Aphria\" width=\"860\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Healthcare_Stocks_4_Aphria_APHA-T\"><\/span>Healthcare Stocks #4 Aphria (APHA-T)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img alt=\"APHA-T stock price chart\" decoding=\"async\" src=\"https:\/\/data.wealthica.com\/api\/securities\/APHA-T\/chart?labels=tru\" width=\"125\" align=\"right\" \/>Consider this a weak buy. I&#8217;m cautious about weed stocks which continues to be a volatile sector, but Aphria (along with <a href=\"https:\/\/stockchase.com\/company\/view\/4811\/WEED-T\">Canopy<\/a>) are the industry leaders and recent numbers point upwards.<\/p>\n<p><span lang=\"en-CA\"><a href=\"https:\/\/stockchase.com\/company\/view\/5210\/APHA-T\">Aphria<\/a>&#8216;s last quarterly, released on April 14, reported net income of $5.7 million on $144.4 million net revenue as sales doubled year-over-year. <a href=\"https:\/\/stockchase.com\/company\/view\/5210\/APHA-T\">Aphria<\/a> remains profitable whereas <a href=\"https:\/\/stockchase.com\/company\/view\/4811\/WEED-T\">Canopy<\/a> posted a loss of $1.3 billion on May 29. In nearly every time frame, <a href=\"https:\/\/stockchase.com\/company\/view\/5210\/APHA-T\">Aphria<\/a>&#8216;s chart beats <a href=\"https:\/\/stockchase.com\/company\/view\/4811\/WEED-T\">Canopy<\/a>&#8216;s hands-down. For instance, in the last three months, <a href=\"https:\/\/stockchase.com\/company\/view\/5210\/APHA-T\">Aphria<\/a> has soared 50% and leaves behind <a href=\"https:\/\/stockchase.com\/company\/view\/4811\/WEED-T\">Canopy<\/a> at 17.8%. It appears that the spring lockdown did not hurt <\/span><span style=\"color: #000080;\"><span lang=\"zxx\"><u><a href=\"https:\/\/edmonton.ctvnews.ca\/alberta-s-top-doctor-concerned-over-alcohol-cannabis-use-to-cope-with-covid-19-1.4985568\" target=\"_blank\" rel=\"noopener\"><span lang=\"en-CA\">legal cannabis sales<\/span><\/a><\/u><\/span><\/span><span lang=\"en-CA\"> either. <\/span><\/p>\n<p><span lang=\"en-CA\">Therefore with provinces continuing to open up this summer, weed sales will likely rise, perhaps sharply. <a href=\"https:\/\/stockchase.com\/company\/view\/5210\/APHA-T\">Aphria<\/a> has a price target of $8.19, around 35% higher than the current share price.<\/span><\/p>\n<p>Stay safe, stay cool.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>For obvious reasons, the healthcare stocks are front and centre for investors these days. Even before the pandemic, the aging demographic around the world was another catalyst for growth in these Canadian healthcare stocks to buy. All eyes on COVID [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":178078,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"cwp_meta_box_check":"No","cwp_rev_product_name":"","cwp_rev_product_image":"","wppr_links":[],"cwp_rev_price":"","wppr_options":[],"wppr_pros":[],"wppr_cons":[],"footnotes":""},"categories":[17],"tags":[476,430,475],"class_list":["post-177857","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lists","tag-canadian-healthcare-stocks","tag-healthcare","tag-healthcare-stocks"],"wppr_data":{"cwp_meta_box_check":"No"},"_links":{"self":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/posts\/177857","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/comments?post=177857"}],"version-history":[{"count":0,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/posts\/177857\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/media\/178078"}],"wp:attachment":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/media?parent=177857"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/categories?post=177857"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/tags?post=177857"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}