The S&P/TSX Composite Index climbed 47 points to open the week on Monday, May 29. Some of the top-performing sectors on the trading day included energy, health care, battery metals, and financials. Canadians have been crunched by inflation and higher interest rates since the end of the pandemic. However, those with some extra cash to invest might want to jump on the May dip the market has experienced.
Today, I want to zero in on two TSX stocks that are worth snatching up with a $500 investment apiece.
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Why I’m still bullish on this TSX stock in the middle of 2023
goeasy (TSX: GSY) is a Mississauga-based company that provides non-prime leasing and lending services under the easyhome, easyfinancial, and LendCare brands to consumers in Canada. Shares of this TSX stock have jumped 17% month over month as of close on May 29. That has pushed the stock into the black in the year-to-date period.
This company unveiled its first-quarter (Q1) fiscal 2023 earnings on May 9. goeasy reported loan originations of $616 million — up 29% from $477 million in Q1 fiscal 2022. Meanwhile, it posted loan growth of 58% to $124 million. Its loan portfolio rose 39% to $2.99 billion. This company has put together an impressive performance in the face of major challenges in the macroeconomic arena.
Strong loan growth powered the company to post revenues of $287 million — up 24% compared to the previous year. Moreover, adjusted diluted earnings per share (EPS) increased 14% year over year to $3.10. The company delivered its 87th straight quarter of positive net income. Total customers served reached 1.3 million.
Shares of this TSX stock currently possesses a favourable price-to-earnings (P/E) ratio of 10. In its first quarter report, goeasy announced a quarterly dividend of $0.96 per share. That represents a 3.5% yield. goeasy has achieved nine straight years of dividend growth, making it a Canadian Dividend Aristocrat.
Kinaxis is a TSX stock with a bright future
Kinaxis (TSX: KXS) is the second TSX stock I’d look to snatch up in the final days of May 2023. This Ottawa-based company provides cloud-based subscription software for supply chain operates in the United States, Canada, and around the world. Its shares have dropped marginally month over month as of close on May 29. The TSX stock is still up 20% so far in 2023. Canadian investors can see more with the interactive price chart below.
This company has attracted top global firms with its industry-leading supply chain management software. These have included powerhouses like Ford Motor Company, Toyota Motor Company, Unilever, and others. Investors got to see this company’s Q1 fiscal 2023 results on May 3. In Q1 2023, Kinaxis delivered total revenue growth of 3% to $101 million. Meanwhile, gross profit slipped 12% to $61.0 million.
For the full year, Kinaxis is projecting total revenue between $425 million and $435 million. Meanwhile, it forecasts Software-as-a-Service growth between 25% and 27%. Kinaxis boasts an immaculate balance sheet at the time of this writing. This TSX stock is trading in solid value territory while its earnings are on track for very strong growth going forward.
