The Canadian stocks we’ve uncovered have seen increased demand for its products and services as a result of COVID-19
SmallCapPower | April 27, 2020: COVID-19 has hurt the global economy more than any other event in modern-day history, but for some companies business has likely never been better. Today we have sifted through and found three Canadian stocks that have seen a big uptick in sales as a result of the COVID-19 pandemic.
*Returns are based on closing stock prices as of April 24, 2020
CounterPath Corporation (TSX:PATH) – $4.24
CounterPath is a provider of VoIP technology that allows people to connect, communicate and collaborate using voice, video, messaging and presence on multiple devices, across multiple platforms and over fixed and mobile networks. The Company’s Bria softphones for desktop, tablet and mobile devices, together with Stretto Platform server solutions, enable service providers, OEMs and enterprises large and small around the globe to offer a seamless and unified communications experience across any networks. Established in 2002, CounterPath hold 24 patents and its products have been purchased by more than 400 customers in 60 countries. The Company says it is transitioning to a cloud-based revenue model that should shorten the sales cycle and lead to higher recurring revenue over time. CounterPath’s most recently-reported quarter (Q3 2020) showed 13% year-over-year recurring revenue growth, representing 56% of total revenue. On April 23, 2020, CounterPath said the COVID-19 global public health emergency has resulted in strong demand for CounterPath products and services, adding that it expects Q4 revenue in the range of $3.6 million to $4.0 million, resulting in growth of 26% to 40% compared to the fourth quarter of Fiscal 2019.
- Year-to-Date Return: 259%
Jamieson Wellness Inc. (TSX:JWEL) – $31.84
Jamieson Wellness has a portfolio of natural health brands. The Company also manufactures and markets sports nutrition products and specialty supplements under its Progressive, Precision and Iron Vegan brands. Since 1999, Jamieson has grown at a compound annual rate of 7.4% and has increased its dividend by 38% since 2017. Revenue during 2019 rose 7.9% to $345.0 million, while adjusted earnings per diluted share for the year increased 12.9% to $0.96, with another 6% to 15% increase expected during 2020. On April 8, 2020, Jamieson Wellness announced that it expects first-quarter revenue for fiscal 2020 to be approximately $83.0 million to $84.5 million, a year-over-year increase of 23% to 25%.
- Year-to-Date Return: 24%
Neptune Wellness Solutions Inc. (TSX:NEPT) – $3.19
Neptune Wellness specializes in the extraction, purification and formulation of health and wellness products. Neptune’s wholly-owned subsidiary, 9354-7537 Québec Inc., is licensed by Health Canada to process cannabis at its 50,000-square-foot facility located in Sherbrooke, Quebec. The Company also has a 24,000 square-foot facility located in North Carolina to process hemp biomass into extracts. As well, Neptune’s Ocean Remedies krill oil offers consumers a source of EPA and DHA omega-3 fatty acids, phospholipids and natural antioxidants. The Company’s most recently-reported quarter (Q3 2020) saw revenue increase 41% sequentially to $9.2 million. On April 23, 2020, Neptune Wellness said it has ramped up production of hand sanitizers to more than one million units weekly.
- Year-to-Date Return: – 11%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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