Is Now Actually the Perfect Time to Buy goeasy Stock?

goeasy (TSX:GSY) stock offers investors a substantial opportunity, with shares down significantly, but it’s still reporting record results.

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Tech stocks have gotten a bad rap over the last few months. After years of growth, they pretty much all came tumbling down during this market drop. But in the case of goeasy (TSX:GSY), the fall was totally unwarranted.

Today, I’m going to go over why and why now is likely the best time to pick up goeasy stock.

Decades of growth

goeasy gas decades of growth — yes, decades. This is something you simply cannot say for most tech stocks. Yet goeasy stock has been around since the 1990s. Back then, it focused more on renting out home appliances. Now, it still has that revenue stream, but it has since shifted into providing loans online.

This has become quite a lucrative revenue stream over the years. In fact, even during the economic downturn, goeasy stock recently posted record revenue during its last quarter at a time when loans were shrinking for pretty much every other company.

goeasy stock saw loan originations up 66% year over year to $628 million, with organic loan growth up 191% to $216 million. Its diluted earnings per share were up 100% to $2.32 as well, with revenue hitting a record 24% increase to $252 million for the quarter.

Yet it still dropped!

goeasy stock still dropped simply for being labelled a tech stock. But the fundamentals are still so sound, and it now offers investors with a fantastic opportunity. Shares are down 39% year to date, jumping before falling again during its last earnings report.

Earnings are now due in early November, and there are some signs the stock could announce positive results once more. So, now might be the best time to pick up the stock before it recovers.

But honestly, goeasy stock has also been around so long that you really cannot do wrong at these share prices. Don’t wait for a market bottom; instead, look for a great deal. You have that with goeasy stock right now, including with its fundamentals.

Fundamentally sound

Let’s take a look at its fundamentals next. goeasy stock trades at just 10.14 times earnings as of writing, putting it in value territory. Shares are also expected to almost double in the next year from where it is at about $105 per share. Economists give it a consensus potential target price of $203 per share as of writing.

Then there’s its substantial growth to consider. Shares are up a whopping 3,696% in the last two decades alone. This is a compound annual growth rate (CAGR) of 19.92% as of writing! Further, it also offers a 3.47% dividend yield — one that’s increased at a CAGR of 26.95% in the last decade!

Bottom line

With history behind it, growth ahead of it, and a current deal, goeasy stock is a substantial opportunity for investors. You won’t have to wait long to see your investment double. However, while you do wait, you’ll receive a strong dividend as well. And, honestly, this is an opportunity that likely won’t come around again — certainly not at these levels.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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