Business & Investment

Three high-growth small cap stocks to buy in 2021

Small caps can be complex in the long run, bringing great wealth to investors. However, these stocks can be risky because market volatility can have an immediate impact on these companies. Therefore, investors with higher risk-taking capabilities and longer investment periods can invest in these stocks for better returns. Meanwhile, we would like to introduce three small-cap stocks that can be purchased this year.

Jamieson Wellness

With the growing interest in health due to COVID-19 and the growing demand for products, Jamieson Wellness (TSX: JWEL) Last year we had an impressive return of over 40%. The company’s top and bottom lines increased 17.2% and 21.3%, respectively, in the first three quarters of 2020. During the period, strong sales in both the international and domestic markets drove the company’s finances.

Meanwhile, healthy living, rising disposable income and growing interest in the aging of the population create the potential for long-term growth in Jamieson Wellness. The company is also investing heavily in capacity expansion to meet growing demand. Despite the transition to the international market, China remains a major market. The company has gained a leading position in China’s international vitamin, minerals and supplements (VMS) brands. Meanwhile, the company also hopes to acquire an existing distributor by the end of 2022.

In a recent pullback, Jamieson Wellness has fallen about 21.5% from its 52-week high, demonstrating a good buying opportunity.

HEXO

New interest in cannabis stocks and their impressive inside First quarter performance, Hexo (TSX: HEXO)(NYSE: HEXO) It has returned more than 155% since the beginning of November. The company exceeded analysts’ earnings expectations and narrowed its net loss in the last quarter of November. Adjusted EBITDA improved for the sixth straight quarter. The company’s financial position also looked healthy, with working capital of $ 250.3 million at the end of the quarter.

Meanwhile, given the healthy growth outlook for the cannabis sector, HEXO’s share price could continue to rise. The company’s Original Stash and Truss brands have helped to gain significant market share in the hash and cannabis-injected beverage categories, respectively.

In addition, the company has stepped up its expansion plans in other Canadian markets after gaining significant market share in Quebec. In December, we renewed our UP brand products to increase the THC content and improve quality. Earlier this month, its joint venture, Truss CBD USA, launched a new line of non-alcoholic CBD beverages in Colorado. So, given its high growth prospects, I’m bullish on HEXO.

Well Health Technologies

last year, Well Health Technologies (TSX: WELL) With the growing demand for services due to pandemics, we returned more than 415%. During the pandemic, patients who were afraid to visit the hospital due to safety concerns chose telemedicine services, driving demand for well-health services.

The technical infrastructure allows patients to receive medical care anytime, anywhere in a cost-effective manner. So I believe that the demand for telemedicine services will continue in the post-pandemic world and will benefit well health. The company also expanded its telemedicine services to the United States through the acquisition of Circle Medical.

Meanwhile, WELL Health is also expanding its EMR business through acquisitions. It currently serves approximately 2,200 clinics in Canada and targets approximately 10,700 doctors. We have also created a marketplace for digital health applications and currently have over 25 apps. So, given its high growth prospects, I think the momentum of the well health stock price rise will continue...

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The Motley Fool recommends HEXO. And HEXO. A stupid contributor, Rajiv Nanjapla, does not have a position in any of the shares mentioned.

Three high-growth small cap stocks to buy in 2021

https://www.fool.ca/2021/01/28/3-high-growth-small-cap-stocks-to-buy-in-2021/ Three high-growth small cap stocks to buy in 2021

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