The S&P/TSX Composite Index fell 151 points to close out the previous week on Friday, March 17. Canadian stocks have been hit hard by volatility, along with their counterparts south of the border. The collapse of Silicon Valley Bank, the 16th largest bank in the U.S., stirred investor anxiety and triggered major turbulence for the markets. Today, I want to zero in on three hidden stocks that have the potential to make you a fortune down the road. Let’s jump in.
This hidden stock could benefit from a central bank policy shift
Clairvest Group (TSX: CVG) is the first under-the-radar stock I’d like to focus on in this piece. This Toronto-based private equity firm specializes in mid-market, growth equity investments, growth capital, buyouts, and consolidating industries and add-on acquisitions. Business investment has taken a hit in this tighter monetary environment. However, central banks have pledged to move forward with dollar equity measures that could make for a more friendly business investment climate in the spring.
Shares of Clairvest have increased 24% year over year as of close on March 17. The stock has jumped 9.4% so far in 2023. In the third quarter of fiscal 2023, the company reported that its book value stood at $1.23 billion, or $81.97 per share — up from $1.19 billion, or $79.48 per share.
This company has delivered massive earnings growth over the past year. Its shares currently possess a price-to-earnings (P/E) ratio of 4.4, which puts Clairvest in very favourable value territory.
Invest in the future of financial markets with this underrated stock
TMX Group (TSX: X) is another hidden stock that I’m excited about owning for the long haul. The financial sector has enjoyed huge expansion over the past decade. We have even seen the emergence of a brand-new asset class in the form of digital currencies, which also gave birth to new exchanges. TMX Group is a Toronto-based company that operates exchanges, markets, and clearinghouses primarily for capital markets in Canada and around the world.
This TSX stock has climbed 3.3% year over year and is up only 1% so far in the new year. Investors who want a more detailed look at its recent performance with the interactive price chart below.
The company unveiled its final batch of fiscal 2022 earnings on February 6, 2023. In the fourth quarter of 2022, TMX Group delivered revenue growth of 9% to $274 million. Meanwhile, adjusted diluted earnings per share (EPS) fell 2% to $1.74. For the full year, revenue increased 14% to $1.11 billion and income from operations climbed 7% to $524 million. Overall, the company put together a very solid year in the face of challenging macroeconomic conditions.
Shares of TMX Group possess an attractive P/E ratio of 13. Better yet, it offers a quarterly dividend of $0.87 per share. That represents a 2.5% yield.
One more exciting stock to snatch up before the spring season
goeasy (TSX: GSY) is the third and final under-the-radar stock I’d look to snatch up in the late winter season. This Mississauga-based company provides non-prime leasing and lending services under the easyhome, easyfinancial, and LendCare brands across Canada. Its shares have jumped 3.5% in 2023. However, the stock is still down 20% year over year.
In 2022, goeasy saw its customer base grow to over 1.3 million. Meanwhile, revenue rose to $1.01 billion compared to $826 million for the full year in fiscal 2021. The company forecasts that is gross consumer loans receivable will hit between $3.4 billion and $3.6 billion by the end of fiscal 2023, while total revenues will be between $1.15 billion and $1.25 billion.
goeasy stock last had a favourable P/E ratio of 13. It offers a quarterly dividend of $0.96 per share, which represents a 3.5% yield. The company has delivered nine straight years of dividend growth, which makes this exciting growth stock a Dividend Aristocrat.
