2 Canadian Financial Stocks to Bet on for a Bullish June

Canadians hoping for a bullish summer should look to financial stocks that offer nice value like goeasy Ltd. (TSX:GSY) and others.

| More on:
A bull outlined against a field

Image source: Getty Images.

The S&P/TSX Composite Index was down 79 points in early afternoon trading on Friday, June 9. Some of the worst-performing sectors included health care, industrials, and base metals. Today, I want to focus on two Canadian financial stocks that I’m looking to target as we hope for clearer sailing ahead after rough few weeks in April, May, and the beginning of June. Let’s jump in.

This undervalued financial stock is also a Dividend Aristocrat!

goeasy (TSX:GSY) is the first financial stock I’d suggest investors snatch up before the midway point in June 2023. This Mississauga-based company provides non-prime leasing and lending services under the easyhome, easyfinancial, and LendCare brands to Canadian consumers. Shares of this financial stock have climbed 12% month over month at the time of this writing. That has pushed the stock into positive territory in the year-to-date period.

This company released its first-quarter (Q1) fiscal 2023 earnings on May 9. goeasy produced loan originations of $616 million, which was up 29% compared to Q1 fiscal 2022. That growth was powered by improved results across goeasy’s range of products and channels that included unsecured lending, home equity loans, and more. Its loan portfolio climbed 39% year over year to $2.99 billion.

The growth of its loan portfolio fueled adjusted operating income growth of 24% to $106 million in Q1 2023. Meanwhile, adjusted net income hit a record $52.9 million — up 16% compared to the previous year. Earnings before interest, taxes, depreciation, and amortization increased 56% from the prior year to $117 million.

goeasy delivered its 87th straight quarter of positive net income in the quarter. Meanwhile, it reached total customers served of 1.3 million. This alternative lender is still geared up for strong growth going forward.

Shares of this financial stock currently possess a favourable price-to-earnings ratio of 10. goeasy offers a quarterly dividend of $0.96 per share. That represents a 3.5% yield. The company has delivered nine straight years of dividend growth.

Here’s another financial stock I’m looking to snatch up in June 2023

Manulife Financial (TSX:MFC) is a Toronto-based company that provides financial products and services in North America, Asia, and around the world. Shares of this financial stock have dipped 3.5% month over month as of early afternoon trading on June 9. Manulife stock is still up 5.6% so far in 2023.

Investors got to see Manulife’s first batch of fiscal 2023 earnings on May 10. On the business front, management stated that “in Asia,” the company “continued to leverage our health and wellness platform, ManulifeMOVE, to drive incremental sales.” Moreover, it accelerated its user adoption of its customer website in Vietnam. Asia remains a key driver for growth at this Canadian insurance giant.

Asia annualized premium equivalent (ABE) sales rose to $1.17 billion in Q1 fiscal 2023 — up from $1.08 billion in the previous year. Total APE sales dipped marginally to $1.60 billion.

This financial stock lad had an attractive P/E ratio of 8.8. Moreover, Manulife offers a quarterly dividend of $0.365 per share, which represents a strong 5.6% yield.

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 Ambrose O'Callaghan has positions in Goeasy. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Investing

Businessman holding AI cloud
Tech Stocks

2 Artificial Intelligence-Powered Growth Stocks to Buy Right Now

Canadian investors should strongly consider Alphabet (NASDAQ:GOOGL) and another AI stock ahead of the next AI-driven tech boom.

Read more »

Canadian Dollars
Dividend Stocks

Where I’d Invest a $10,000 Windfall Right Now

This investing strategy increases returns while reducing risk.

Read more »

grow dividends
Investing

Got $3,000? These Stocks Could Double Your Money by 2030

Investors can look to snatch up stocks like goeasy Ltd. (TSX:GSY) and others for $1,000 each today for the chance…

Read more »

tsx today
Metals and Mining Stocks

TSX Today: What to Watch for in Stocks on Friday, September 29

The main TSX index remains on track to post its worst performance in four months, as it has already lost…

Read more »

Upwards momentum
Investing

This Growth Stock Has Market-Beating Potential

Are you looking for stocks with market-beating potential? Here’s my top pick!

Read more »

A colourful firework display
Tech Stocks

Nuvei Stock is on Fire This Year: Is it a Good Buy Today?

Nuvei stock (TSX:NVEI) is down about 85% since pandemic highs, falling 39% after earnings. So, what now?

Read more »

money cash dividends
Dividend Stocks

2 Dividend Stocks for Passive Income

Both of these dividend stocks are good sources of long-term passive income. They also currently trade at good valuations.

Read more »

Business success with growing, rising charts and businessman in background
Investing

3 Growth Stocks to Invest $6,500 in Right Now

Have you invested $6,500 into the stock market this year? You could be missing out. Find out why!

Read more »