Canada Budget 2022: 2 stocks as Freeland allots $5.3B for dentalcare

Canada’s federal budget was launched Thursday, April 7, by Chrystia Freeland in her new shoes – one of those quaint Canadian traditions going back to the 1950s, where the Minister of Finance presents the budget in new shoes.

One of the noteworthy aspects of budget 2022 was dentalcare. Dentalcare saw some major developments but pharmacare, where some expected developments, didn’t.

One in three Canadians lacks dental insurance. As per the new budget, Health Canada is to be given C$5.3 billion over five years to create a national dental care plan.

The national dental care plan is expected to be fully in force by 2025. It will start with under 12-year olds in 2022 and expand to under 18-year olds, seniors and people with disabilities in 2023. Households earning over C$90,000 are not covered.

NDP Leader Jagmeet Singh indicated that the deadline for a pharmacare act has been extended to next year. This means, for another year at least, pharma companies may continue operating as is.

On that note, let us take up two Canadian stocks that make for an interesting watch.

dentalcorp Holdings Ltd (TSX:DNTL)

dentalcorp Holdings is a TSX-listed company that acquires dental practices in Canada. Revenues of partner dentists and practitioners contracted by professional organizations as well as healthcare providers servicing employees, count towards it.

It has a market capitalization of C$2.6 billion and its stock closed Wednesday, April 6, at C$15.42. The stock has lost 3.1 per cent year-to-date (YTD) but has rebounded almost 13 per cent in the last 30 days and nearly four per cent in the past week.

Also read: Canada budget 2022: What to expect & what are the big questions?

Acasti Pharma Inc (TSXV:ACST)

The late-stage specialty pharma firm has drug delivering technologies as well as drug candidates. It seeks to improve patient outcomes by realizing faster onset of action, lower side effects and greater efficacy.

Acasti has a market cap of C$39 million. The ACST stock closed at C$1.50 Wednesday, April 6. The stock has lost 72 per cent in a year, and over seven per cent YTD, but has rebounded over 15 per cent the last month.

Image source: Pixabay.com

Also read: What is Canada's Federal Budget and how it can impact you?

Bottom line

The above two stocks seem to be on the rebound. However, there is no certainty that these two stocks will continue in the green due to recent developments. Investment in any stock merits a great deal of research into the company and the sector.

Also read: Canada Budget 2022: A look at macroeconomic indicators

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.