CareRx (TSX:CRRX) is a Toronto-based company that provides specialty pharmacy services to seniors in Canada. Shares of this stock have plunged 53% in 2022 as of close on December 29. However, the stock has increased 1.5% over the past week. Is it worth buying on the dip? Let’s dive in.
Canadian investors should be eager to get in on companies that service seniors. This demographic cohort is experiencing massive growth and will represent nearly a quarter of the total Canadian population by the end of this decade. Data Bridge Market Research recently projected that the global elderly care market will deliver a compound annual growth rate (CAGR) of 7% from 2022 through to 2029.
This company unveiled its third quarter fiscal 2022 earnings on November 9. It delivered revenue growth of 37% to $97.4 million. That growth was primarily due to the acquisition of the Long-Term Care Pharmacy Business of Medical Pharmacies Group Limited. Meanwhile, adjusted EBITDA climbed 12% to $7.7 million. Its net loss improved to $1.8 million compared to $3.9 million in the third quarter of fiscal 2021.
Shares of CareRx fell into technically oversold territory in early December. It has since recovered to neutral territory. However, I’m still looking to snag this promising stock on the dip as we approach the New Year. CareRx is positioned to deliver very strong earnings growth. Moreover, it is trading in favourable value territory compared to its industry peers.
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