Kalkine Media lists three TSX health care stocks to watch this quarter

The health care sector's focus is shifting from the pandemic to business building and diversification. Growth and innovation have been a part of the health care sector. However, due to rising inflation, this sector is also impacted.

While selecting your stocks, look for a combination of the potential to add value, growth, and past performance.

Hence, investors must also focus on the diversification factor of their portfolio. Let us explore three health care stocks listed on the TSX and see their performances:

BELLUS Health Inc. (TSX: BLU)

BELLUS Health Inc. is a biopharmaceutical development firm that caters to its clinical stage. Further, the company is engaged in providing therapeutics for conditions that have not been catered to properly.

The total market capitalization of BELLUS is US$ 1.7 billion. The company posted a net loss of US$ 18.8 million in Q2 2022.

BELLUS Health Inc. ended Q2 2022 with a total of US$ 220.1 million, including cash and cash equivalents and short-term investments.

Chartwell Retirement Residences (TSX: CSH.UN)

Chartwell Retirement Residences is an open-ended trust and offers long-term care services. The company has an employee strength of 15,589.

In Q2 2022, the net income of Chartwell Retirement Residences was noted at C$ 1.1 million relative to the net loss of C$ 4.6 million in the year-ago quarter.

The company said that in Q2 2022, its resident revenue grew US$ 9.2 million or 6.0 per cent. This increase has been attributed to revenue growth in the same property portfolio and contributions from acquisitions, development, and other portfolios.

On April 1, 2022, Chartwell Retirement Residences acquired three retirement residences in Ontario with 467 suites.

The company’s employee engagement score reportedly increased by 500 basis points and matched the pre-pandemic levels.

Extendicare Inc. (TSX: EXE)

Extendicare Inc. deals in long-term care facilities. The company's business is divided into five segments: home health care, Long-term care, corporate segment, Retirement living and other Canadian operations.

In Q2 2022, the revenue increased by 5.3 per cent or C$ 14.9 million and was reported at C$ 296.6 million.

The net operating income increased by C$ 1.4 million and was noted at C$ 30.3 million. Further, the adjusted EBITDA increased to $17.1 million and witnessed an increase of C$ 1.6 million.

The earnings from continuing operations increased by C$ 1.8 million and were posted at C$ 3.5 million in Q2 FY22.

The company paid a quarterly dividend of C$ 0.04 and its dividend yield is 7.038 per cent. In May, Extendicare announced its acquisition of Revera’s 15 per cent interest in long-term care homes in partnership with Axium.

Bottom Line

Investors can look to diversify their portfolios. Relying on one stock is usually not helpful in the long run. Different stocks offer different growth patterns. Some may give you cyclical growth, while others may follow a linear pattern. Choose the stock as per your suitability. Pick up stocks that match your investment goals and risk tolerance level.

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.