With a possible recession rearing its ugly head, finding the right stock play can be tricky. For this reason, it is important to invest in sectors that are always essential. Luckily, healthcare is fairly recession-proof.
What is more essential than healthcare? In both good and bad times, people will get sick and need healthcare. So when markets are down, Canadian healthcare stocks could be a great defensive play. We’ve scoured the charts and compiled some of our top healthcare stock picks for 2022.
What Are the Best Healthcare Stocks in Canada in 2022?
Best Canadian Healthcare Stocks
If you’d like to diversify your portfolio in the healthcare sector, try looking into the following exchange-traded funds (ETFs). We think these healthcare ETFs on TSX are some of the best healthcare stocks in Canada right now.
- Ticker: EXE
- Founded: 1968
- 2021 gross revenue: $1.22 billion
Extendicare Inc. is a for-profit company that specializes in long-term care, retirement living, and home health care. They operate 119 long-term care homes and private-pay retirement communities located across Canada.
The EXE healthcare ETF in Canada tends to have controlled movements, making it a typically low-risk stock. Since the beginning of the COVID-19 pandemic, EXE shares have generally been on an upward trend, from $6.72 to $7.94. This is an 18.2% increase as of March 2022.
This could be a good buying opportunity as the stock is likely to perform well in the short term. Just keep in mind that the return potential may not be very high.
However, dividends coming in could be an added bonus. Extendicare is a generous dividend payer compared to other dividend stocks, with an annual dividend of $0.48 per share.
- Ticker: HLS
- Founded: 2014
- 2021 gross revenue: $60 million
Many medical stocks in Canada were affected by the COVID-19 pandemic. One of them was HLS. HLS Therapeutics is a Toronto-based pharmaceutical company that acquires and commercializes drugs targeting the cardiovascular and central nervous systems.
Right before the pandemic, HLS experienced a high of $24.24. This was the stock’s peak, and since then has slowly crept downward.
However, it is fair to speculate that HLS has the potential to return to its pre-pandemic trajectory. In fact, the forecast is bright with analysts set on a possible price target of $31.67, which is 109.7% over the current price of $15.10 (March 2022).
If HLS is capable of hitting its previous highs, this could turn into one of the best healthcare ETFs on TSX.
- Ticker: WELL
- Founded: 2010
- 2021 gross revenue: $235 million (projected)
WELL Health Technologies is a digital health technology company that owns and operates the most outpatient health clinics in Canada. They also provide EMR (electronic medical record) services through their SaaS products.
WELL Health expanded its business to include various branches of telemedicine including an AI-powered digital app. This expansion is probably what enabled its huge growth spurt alongside other telemedicine healthcare stocks during the COVID-19 pandemic.
The company is expected to continue to have organic growth this year. Additionally, the company has expanded through mergers and acquisitions and will continue to do so, solidifying it as a telemedicine powerhouse.
All of these positive signs make WELL Health stocks one of the top healthcare stocks to buy right now. AI healthcare stocks in Canada allow you to invest in the future of tech. And you’re just in time because WELL is on a lower trend.
- Ticker: DNTL
- Founded: 2011
- 2021 gross revenue: $1.03 billion
Dentalcorp Holdings was named one of Canada’s Best Managed Companies in 2016. The company has consolidated a formidable group of dental practices and professionals specializing in general and specialist dental practices. Currently encompassing more than 445 locations and over 7,000 dental professionals, Dentalcorp services a whopping four million patients a year.
Dentalcorp recently announced an extended partnership with Align Technology to help expand into the orthodontic sector. Align Technology are the makers of Invisalign®, a popular clear aligner treatment.
Only joining CAD stocks as recently as May 2021, this newcomer is already one of the top healthcare companies for dentistry in Canada. This sets it up as a possible linear growth stock to keep your eye on.
Admittedly, DNTL has gotten off to a wobbly start since its inception to TSX. However, having such a large corner on the market already makes it tough to beat. Buying in now could be a great opportunity to get in early before the company expands even more.
- Ticker: CSH.UN
- Founded: 2003
- 2021 gross revenue: $8.55 million
One of the major healthcare companies for senior housing is Chartwell Retirement Services. This company indirectly owns and operates over 200 retirement communities in Quebec, Ontario, Alberta, and British Columbia.
When the pandemic hit, CSH.UN’s normally steady stock price sank to an unexpected low. But as the pandemic has continued, the price has tentatively and steadily risen. This indicates the hit was pandemic related, and not need-based.
With the accelerating growth of the Canadian senior population, the need for senior housing will be even more necessary. This makes the senior housing sector a safe bet as CSH.UN continues towards its pre-pandemic levels.
Additionally, this unincorporated, open-ended trust currently has a dividend yield of 4.87% as of March 2022. Chartwell pays an annual dividend of $0.61 per share, which gives it a higher dividend yield than 75% of dividend stocks.
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- Ticker: BHC
- Founded: 1959
- 2021 gross revenue: $8.43 billion
Bausch Health Companies is a speciality pharmaceutical company that is one of the top healthcare companies. But, only 20% of its revenue is made in Canada. The company earns a significant portion of its revenue stream from the eye care products of Bausch + Lomb, its wholly-owned subsidiary.
Formerly known by the name Valeant, Bausch has worked to put its bad reputation behind them. This is due to some legal troubles regarding its business practices, which caused the company to lose the confidence of its shareholders. Bausch has not yet been able to live up the peaks of its previous heights. That being said, it is still the largest of health stocks in Canada measured by market cap.
The company is currently trading far below what would normally be expected for a company of its size. Is 2022 the year Bausch will rebound? It could be the right time to buy in if you believe in second chances.
- Ticker: HTL
- Founded: 2002
- 2021 gross revenue: TBA 4/7/2022
Niche medical stocks can be a very smart investment. Hamilton Thorne Ltd. develops and manufactures laser technology products used for image analysis and microsurgery solutions. These technologies have become especially useful for in vitro fertilization (IVF) procedures.
The company owns six brands including Planer, which produces programmable freezers, loggers, cryostorage, software systems, and sensors to safely preserve samples used in assisted reproductive technologies (ART) and cell biology projects.
Although the company is US-based, it is traded on TSX. Since 2016, HTL has been one of the most steadily growing healthcare stocks. Due to its niche market, Hamilton Thorne products are now found in two out of every five pharmaceutical companies, biotechnology companies, fertility clinics, and research centres.
HTL shares have steadily risen since 2013 and were not at all affected by the
COVID-19 pandemic. With a high likelihood of capital appreciation, this could be another linear growth stock that is well worth the investment.
- Ticker: PRN
- Founded: 2008
- 2021 gross revenue: $6.9 million
If you are looking to invest in the growth story of one of the most innovative healthcare companies in Canada, this could be it! Profound Medical is a medical device company currently in the process of commercializing two exciting technologies alongside big names Siemens, Phillips, and GE.
TULSA-PRO® combines the use of real-time MRI technology, robotically-driven ultrasound, and closed-loop temperature feedback control to provide radiation-free ablation of diseased tissue.
Sonalleve® also is an ablative tool but instead uses ultra-high-frequency sounds. The company is still in the early stages of exploration for the potential treatment markets of this technology.
This is one of the stocks affected by the COVID-19 pandemic. Before the pandemic crash, however, the stock had been riding high. Buying in now on this new and innovative Canadian healthcare technology could be your opportunity to experience its previous growth trajectory.
We’ve included a mix of Canadian healthcare stocks that are either capable of linear growth, cyclical growth, or payout dividends. Choose the best healthcare stocks in Canada that will be most beneficial to your investment goals. Before you buy, we encourage you to do your own research and to always keep in mind the risk tolerance you are willing to endure.
We’ve included an array of Canadian healthcare stocks we think are the best investments. However, the best stock to invest in depends on your investment goals.
Since Canada ranks as the 13th largest economy in the world, Canadian companies can be a very smart investment. The country itself is poised for global trade, is politically stable, has a sound banking system, and is low in corruption. This sets the stage for a relatively calm market to invest in.