Business & Investment

Three Canadian Small Caps to Buy Now

Small cap stocks have the potential to grow their finances at a higher growth rate than medium and large cap stocks. Therefore, these stocks can provide excellent returns. However, these stocks are very sensitive to market volatility and are risky. Therefore, investors with high risk-taking ability and long investment period can invest in these stocks and get excellent returns.

Savaria

Savaria (TSX: SIS) Was making a solid report Second quarter performance yesterday. Its revenue increased 111% to $ 178.6 million. Organic growth from the acquisition of Handy Care and the recovery of economic activity drove the company’s top line. However, the unfavorable currency conversion offset some of the increase. Meanwhile, the company’s adjusted EBITDA also increased 89.3% to $ 27.4 million, supported by strong top-line growth.

Meanwhile, as the population ages and income levels rise, the company’s market is expanding. The company’s strong product portfolio, increased geographic footprint, and cross-selling opportunities from the acquisition of HandyCare could boost its financial position in the coming quarters. Due to its strong financial position, Savaria is ready to fund its growth initiatives. We will also pay a monthly dividend of $ 0.04 per share, resulting in a forward yield of 2.3%. So Savaria will be a great buy for investors There is an investment period of 3 years or more.

Well health

The second on my list is Well Health Technologies (TSX: WELL)Today, we are reporting strong performance in the second quarter. Revenue increased 484% to $ 61.8 million, thanks to the acquisition of CRH Medical and strong growth of 432% in virtual service revenue.

As the top line grew, the company’s adjusted EBITDA also rose. The company’s adjusted EBITDA for the quarter was $ 11.9 million, compared to an adjusted loss of $ 500,000 in the year-ago quarter. Adjusted EBITDA rose due to the additional acquisition of CRH Medical and increased sales from its virtual services. On the other hand, I think the company’s financial condition will continue to rise amid strong market conditions and continued acquisitions.

The company acquired a 51% stake in CRH, MyHealth, Intrahealth Systems, ExecHealth, and Doctors Services Group in the second quarter. With these acquisitions, the company’s management expects annual revenue and adjusted EBITDA execution to reach $ 400 million and $ 100 million, respectively. Therefore, I think the upward trend in well health will continue.

HEXO

My last choice is Hexo (TSX: HEXO)(NYSE: HEXO), It has fallen by more than 66% from its January highs. Its weak third-quarter performance and lack of progress in legalizing cannabis at the US federal level are putting pressure on stock prices. However, the cannabis market is expanding as legalization progresses and cannabis use for medical purposes increases.

As the addressable market expands, HEXO seeks to increase its competitiveness by launching new products and increasing THC content in the hash category. The acquisition has the potential to act as an important growth driver. The company acquired Xenavis while working to close transactions with 48 North Cannabis and Redecan.

These acquisitions could significantly expand product offerings and increase market share in Canada’s recreational cannabis sector. In addition, the synergistic effect allows for significant savings, which improves the HEXO margin. Therefore, given a healthy growth outlook and significant stock price discounts, HEXO expects to offer excellent returns.


This article represents the opinion of a writer who may disagree with the “official” recommendation position of the Motley Fool Premium Services or Advisors. We are Motley! Asking investment treatises, even our own treatises, can help you think critically about your investment and make decisions to be smarter, happier, and richer. As a result, we may publish articles that may not match recommendations, rankings, or other content. ..

Motley Fool is HEXO Corp. And Savaria Corp. Is recommended. Fool contributor Rajiv Nanjapla does not have a position in any of the listed stocks.

Three Canadian Small Caps to Buy Now

https://www.fool.ca/2021/08/12/3-canadian-small-cap-stocks-to-buy-right-now/ Three Canadian Small Caps to Buy Now

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