7 Best Canadian Stocks Under $20

5. Bausch Health Companies Inc. (NYSE:BHC)

Average Price Target Upside as of August 18: 39.62%

Share Price as of August 18: $5.73

Bausch Health Companies Inc. (NYSE:BHC) is an international healthcare company that develops and sells pharmaceuticals and medical devices in the United States, Canada, and Internationally.  The company operates through various business segments namely Salix, International, Solta Medical, Diversified, and Bausch + Lomb segments.

To understand the products of the company it is necessary to discuss what each segment of Bausch Health Companies Inc. (NYSE:BHC) does. The Salex segment focuses on gastroenterology products in the U.S., whereas the International segment of the company sells a range of medical devices and pharmaceuticals to the global market. Moreover, the Solta Medical and Bausch + Lomb segments specialize in medical devices and eye care products, respectively.  Lastly, the Diversified segment offers a variety of pharmaceutical products, including generic and dental products. Overall, Bausch Health Companies Inc. (NYSE:BHC) is a consolidated healthcare company with operations and clients worldwide.

Bausch Health Companies Inc. (NYSE:BHC) posted a successful second quarter of 2024. Its net revenue grew 6% year-over-year to reach $1.19 billion (excluding Bausch + Lomb) on an organic basis. Revenue growth was on the back of organic growth across the board, led by Xifaxan (a medicine that comes under the Salix segment) which grew 10% year-over-year. Xifaxan made Salix segment the top contributor in revenue generating more than $557 million in revenue.

Regionally, Asia Pacific was one of the strongest markets with 19% growth during the quarter. Within Asia Pacific, South Korea witnessed almost double the business as compared to last year and China and Taiwan posted high teens organic growth as well.

While revenue growth is impressive with the company making a strong footing internationally. What’s more notable is its ability to grow its earnings for the fifth consecutive year. The adjusted EBITDA of the company increased 8% year-over-year and amounted to $614 million. Bausch Health Companies Inc. (NYSE:BHC) was also able to generate a strong operating cash flow of $380 million during the quarter mainly because of the improved business performance and favorable working capital movement.

Bausch Health Companies Inc. (NYSE:BHC) is a good investment to consider. Not only was the last quarter a success, the company has been growing its revenue by 2% and levered free cash flow by 14% during the past 10 years. BHC is also cheap at current levels. It is trading at only 2 times its forward earnings, which is a 93% discount to its sector. Moreover, its earnings are expected to grow by 2% during the year to reach $1.04. 8 analysts have a consensus Buy opinion on the stock with their median price target of $8 presenting an upside of 39.62%% from the current level.