Growth stocks – they might have a higher risk profile, but with this comes higher potential rewards. This is why I think that every investor should dedicate a portion of their portfolio to a basket of these higher risk stocks. If just one of them works out, the reward potential is massive. In this article, I'll discuss what I believe is one of the ultimate growth stocks to buy today, Well Health Technologies Inc. (TSX:WELL).

So, if you've got $1,000 to invest, consider buying Well Health stock.

2024 has been another great year for Well Health

Well Health Technologies started out just a few years ago with a mission – to digitize and bring major improvements to the healthcare system. In 2020, just four or so years ago, Well Health reported revenue of $50 million. In 2023, Well Health reported revenue of $776 million. That's 1,452% higher, for a compound annual growth rate of 149% during this time period.

In Well Health's latest quarter, Q3 2024, the company delivered another record-breaking quarter. Revenue increased 27% to $251.7 million, and the company hit the $1 billion revenue run-rate mark. Also, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 16% to $32.7 million.

All of this acted as the catalyst for Well Health's stock price, which has also had a great 2024 so far. In fact, the stock has rallied an impressive 87% year-to-date.

What's up with this growth stock?

As Well Health grows and continues to see the success of its business play out, the company has decided to focus its efforts. This means divesting of certain of its non-core businesses and bringing more focus to the Canadian primary care business.

This business has seen rapid growth, with Well Health's value being recognized as extremely desirable. We have seen that Well Health offers doctors better information management, greater efficiencies, and a taste of the power of artificial intelligence. All of this increases margins of the primary care businesses, as well as improves patient care.

Looking ahead

The primary care market in Canada remains a very large and pretty much untapped market. In fact, of the $40 billion of physician spending, Well Health has roughly $400 million. Long term, Well Health is targeting revenue of $4 billion from the Canadian primary care market. This is approximately 10 times current levels and would still only represent 5% of the market.

Well Health stock trades at 35 times this year's estimated earnings. While this is not necessarily cheap, the company has a lot of growth left in it. It also has a lot of room to increase margins through greater scale and a focus on shareholder value creation. Operating cash flow is seeing significant improvements, as is the company's earnings per share metrics.

Finally, Well Health's balance sheet is strong, with a debt-to-capital ratio of 30%. This, along with Well Heath's divestiture of its two U.S. businesses will provide plenty of cash to pursue more growth and profitability from the Canadian primary care market.

The bottom line

Well Health stock has had a great year as the company continues to blow past expectations. Given the room that the company still has for future growth, I think that it's the ultimate growth stock to buy now. Investing $1,000 will give you a little over 100 shares of this fast-growing company.