Celebrate Mental Health Awareness month with these Canadian stocks

Highlights

• Mental Health America (MHA) has been recognizing May as a Mental Health Awareness month since 1949.
• The theme for this event is “Back to Basics” for 2022.
• Numinus has received approval from Health Canada through its Special Access Program (SAP).

Mental Health America (MHA) has been recognizing May as a Mental Health Awareness month since 1949. The community-based non-profit institution spreads mental health awareness among people through its affiliates across the nation by organizing social events and screenings.

The theme for this event is “Back to Basics” for 2022, as many people faced stress, isolation and uncertainty amid COVID-19.

With the growing awareness about mental health, let us discuss three Canadian mental healthcare stocks.

1.     Numinus Wellness Inc (TSX: NUMI)

Numinus aims to provide safe psychedelic-assisted therapies to treat mental healthcare problems. It received approval from Health Canada through its Special Access Program (SAP) on Wednesday, May 16. Under the SAP program, it is allowed to provide psychedelic therapies in its Montreal clinics to an applicant suffering from treatment-resistant depression.

NUMI stock has plummeted by over 53 per cent in a year. NUMI’s Relative Strength Index (RSI) value, which represents whether a stock is on a bull or bear run, increased to 45.96 on May 17, as per Refinitiv data.

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2.     WELL Health Technologies Corp (TSX: WELL)

While the Canadian healthcare company specializes in primary care, women's health and gastroenterology, WELL Health is also focused on niche segments like mental health.

WELL stock has slipped by over 44 per cent year-over-year (YoY). WELL’s RSI value was 32.49 on May 17, according to Refinitiv. The small-cap company has a debt-to-equity (D/E) ratio of 0.61, which says that the company is using more equity financing than debt. 

3.     CloudMD Software & Services Inc (TSXV: DOC)

CouldMD Software & Services expanded its Mental Health Coach across all Group Benefit Clients in November 2021 by partnering with Sun Life. CouldMD uses its proprietary tech to offer various services, including care for mental health.

DOC stock declined by almost 78 per cent in the past 12 months. And its RSI value of 24.08 (taken from Refinitiv) suggests DOC stock is currently oversold in the market.

Bottomline

These Canadian mental health stocks are currently trading at heavy discounts from their 52-week high. These mental healthcare providers can provide significant growth exposure to new development and the increasing importance of mental health. However, investors should note that these stocks demand a high-risk appetite as these companies, specifically ones engaged in clinical trials and pipeline projects, often take the time or may even fail to reach the market.

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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.