Jamieson Wellness (TSX:JWEL) is a Toronto-based company that develops, manufactures, distributes, markets, and sells natural health products in Canada and around the world. Shares of this TSX stock have increased 1.9% year-over-year as of close on February 24. However, the stock has dipped 7.6% over the past week. Should you be eager to buy into the post-earnings dip? Let’s jump in.
To start, investors should still be enthusiastic about the future of the nutritional supplements market around the world. This was one of the main attraction points for Jamieson when it made its debut on the TSX Index back in July 2017. Grand View Research recently estimated that the global nutritional supplements market was worth US$358 billion in 2021. The report projected that this market would deliver a compound annual growth rate (CAGR) of 6.3% form 2022 through to 2030.
This company released its fourth quarter and full year fiscal 2022 earnings on February 23, 2023. In Q4 2022, Jamieson delivered revenue growth of 48% to $192 million. Meanwhile, adjusted EBITDA shot up 44% to $48.9 million. For the full year, Jamieson achieved revenue growth of 21% to $547 million. Moreover, adjusted EBITDA increased 23% to $123 million.
Despite the positive quarter, the market reacted negatively to its earnings release. Looking ahead to 2023, Jamieson is projecting segment revenue growth between 24-30%. Its acquisition of youtheory will bolster its thrust into China which could pay off huge going forward.
Shares of this TSX stock possess a Relative Strength Index (RSI) of 28. That puts Jamieson in technically oversold territory after its earnings release. I’m looking to buy the dip today.
