WELL Health, Trillium Therapeutics and Andlauer: 3 Hot COVID Stocks to Watch Out for in September

Summary

• Canadian markets are abuzz with the news of Pfizer’s planned deployment of COVID vaccine by 2020-end and the resumption of vaccine clinical trials being developed jointly by Oxford University-AstraZeneca.
• Trillium Therapeutics (TSX:TRIL), Andlauer Healthcare Group (TSX:AND) and WELL Health Technologies (TSX:WELL) are three health care stocks that has been performing well recently.
• Trillium stocks have advanced by an astonishing 1290+ per cent YTD while WELL stocks have surged by 316+ per cent in the same period.
• AND stocks have risen by 121+ per cent this year.

The Canadian markets Monday opened to the optimistic news of Pfizer Inc's CEO announcing the deployment of COVID-19 vaccine by year-end. Following the greenlight by British safety watchdogs over the weekend, Oxford University also announced the resumption of clinical trials of the vaccine it is jointly developing with AstraZeneca. With these recent developments, this is the right time to size up COVID-19 and health care stocks on the Toronto Stock Exchange (TSX). Right off the official TSX ‘Stocklist’ charts are three COVID stocks – Trillium Therapeutics (TSX:TRIL), Andlauer Healthcare Group (TSX:AND) and WELL Health Technologies (TSX:WELL). All the three stocks have witnessed a soaring performance amid the ongoing pandemic circumstances, emerging as the most actively traded health care stocks. Here’s a detailed look at these stocks:

Trillium Therapeutics Inc. (TSX:TRIL)

TRIL Stock Price (Current): C$ 18.58

Trillium stocks have climbed by a whopping 1290+ per cent this year, riding on the health care sector’s surge amid COVID crisis. However, this clinical stage immuno-oncology company has little to do with the coronavirus vaccines or testing or cure. Trillium focuses on developing innovative therapies for cancer treatment.

Market interest in Trillium stocks rapidly rose after Pfizer announced a US$ 25-million equity investment in the company (including US$ 150 million in cash) in September. Pfizer’s Senior Vice-President Dr. Jeff Settleman will also join Trillium’s Scientific Advisory Board (SAB) as a part of this deal. The company also recently shared positive updates from dose escalation studies of its key clinical programs – TTI-621 and TTI-622.

Trillium stocks have surged by over 68 per cent in one month and advanced by over 79 per cent in three months. The company’s current market valuation is C$ 1.5 billion. Trillium hasn’t distributed any dividends so far. In its second quarter 2020 results, the immuno-oncology company announced a net loss of US$ 122.5 million for the six months ending June 30, 2020.

Last week, the company announced the public offering of 10,000,000 common shares priced at US$ 13 per share, expecting to raise around US$ 130 million. To consolidate its position, Trillium restructured the organization, slashing staff strength by 40 per cent and reducing cash burn.

Andlauer Healthcare Group Inc. (TSX:AND)

AND Stock Price (Current): C$ 44.44

Next on our healthcare stock list is Andlauer, a third-party logistics and specialized transportation solution provider for the healthcare sector. The demand for the company’s services have risen in the current COVID circumstances, leading to a 121+ per cent surge in its stock prices year-to-date (YTD).

Andlauer went public in December 2019 with an IPO issue price of C$ 15. Since then, AND stocks have yielded 196 per cent returns. In the last three months, the company’s stocks rose by nearly 37 per cent. The scrips further advanced by 11 per cent in a month.

Andlauer Healthcare stocks not only feature on list of top healthcare companies outperforming its peers on the TSX, it is also the ‘Top Price Performer’ on the stock exchange. The company’s current market capitalization is C$ 555 million and its price-to-earnings ratio is 56.5.

In its second financial quarter 2020, the company’s revenue stood at C$ 70.3 million, down 1.3 per cent year-over-year. Operating income also decreased 2.8 per cent YoY to C$ 11.1 million. EBITDA went up 1.2 per cent YoY to C$ 18.0 million.

It distributed C$ 0.05 quarterly cash dividend and has a current yield of 0.45 per cent.

This health care supply chain management company offers a range of a customized logistics, packaging and specialized transportation solutions while focusing on temperature control, regulatory compliance, quality assurance and high security. It attains a coast-to-coast delivery via ground and air transport and has 29 leased facilities across Canada and five third-party cross-docks. Its clientele and market include pharmaceuticals, nutraceuticals, health and beauty accessories, medical devices, consumer healthcare and animal health.

WELL Health Technologies Corp. (TSX:WELL)

WELL Stock Price (Current): C$ 6.50

Vancouver-based WELL Health Technologies has been in the news for its ambitious expansion plans and growing stock prices. An omni-channel health care and services provider, WELL focuses on providing direct health care services via online, telephone and physical channels. It also has an Electronic Medical Records (EMR) business that has been picking pace and has expanded to 2,000 clinics. The company has 21 medical clinics and is a majority owner of SleepWorks Medical.

In two months, the company’s market valuation has increased from C$ 410 million to C$ 851 million. WELL stocks have risen by a massive 316+ per cent YTD. The shares have advanced by 136 per cent in the last three months and 34 per cent in a month. Its current price-to-book ratio is 16.25 while price-to-cash flow ratio is 28.1.

In its second quarter 2020 results, the company’s revenues grew 43 per cent YoY to C$ 10.5 million and gross profit went up 88 per cent YoY to C$ 4.2 million. The pandemic has also accelerated WELL's telehealth business in the latest quarter. It ended the quarter with C$ in cash and cash equivalents as at C$ 24.5 million.