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A sum of $1000 in capital is a relatively small amount to buy stocks, but it is enough to start an investment adventure. Keep in mind that the measure of financial success in the stock market is the return on investment (ROI). You would be surprised to know that the ROI can be 100% or more when you buy low and sell high or over a longer period of time.
In the 2024 TSX30 List, a flagship program and annual rankings of the TSX's best-performing growth stocks, Hammond Energy Solutions It ranks #1 with a growth of over 928% (dividend-adjusted share price) over three years. If you buy the stock today, the share price is $145.61 (+79.3% year-to-date).
But assuming you only have $1,000 to invest, the best stock to buy right now is Vital center (TSX:VHI). The small-cap healthcare stock is also a top 30 performer this year, coming in at #26. However, it is outperforming Hammond Power Solutions year-to-date. At $8.41 per share, the massive gain is 106.1% in just nine months.
If you had invested $1,000 at the end of 2023, your money would be worth $2,061.27 today. Given the growth trajectory (182.2% and a compound annual growth rate of 41.2%) over three years, healthcare stocks could soon rank higher on the TSX30 list.
Business Overview
Vitalhub develops technology solutions for health and human services providers. Its clients include hospitals, regional health authorities, and those in the mental health, long-term care (LTC), home health, and community and social services sectors. VHI, a TSXV graduate company, began trading on the TSX in September 2021.
The Toronto-based software company, valued at $439.9 million, offers a comprehensive suite of software-as-a-service solutions. Solutions include a) electronic health record (EHR), case management, care coordination and optimization; b) patient flow, operational visibility and patient experience optimization; and c) workforce automation and compliance.
In addition to Canada and the United States, Vitalhub is present in Australia, the United Kingdom, Western Asia and the rest of the world. It is worth noting that the British market is the one that contributes the most revenue. The recent appointment of a new strategic leader is part of the active consolidation program that aims to drive growth and operational excellence.
Vitalhub also expects to close or complete its acquisition of MedCurrent this month. According to VitalHub CEO Dan Matlow, the acquisition of the Clinical Decision Support (CDS) company is an important step toward improving healthcare delivery through technology. “MedCurrent’s unique CDS software addresses a clear and critical need in the healthcare system,” he added.
Building on a solid foundation
In the first half of 2024, revenue and net income increased 23% and 25% year-over-year to $31.5 million and $983,413, respectively. Gross margin in the second quarter of 2024 was a strong 81%, while annual recurring revenue (ARR) grew 25% to $51.3 million year-over-year.
Matlow said the recent quarterly results reflect significant organic growth and strategic progress. At the end of the quarter, the cash position reached $71.6 million. Matlow said this will allow Vitalhub to pursue organic growth and strategic acquisitions effectively. “We continue to build on our strong foundation,” Matlow said.
Grow your wealth
Investing $1,000 in high-yield stocks is enough to build wealth. Vitalhub is cheap right now, but it could become expensive or unattainable if it continues to gain 100% every year.