Are you finished all your Christmas shopping? If you were lucky enough to bag some deals and save some dollars, you might be sitting with some extra cash this season.
If you are looking for some Christmas stocking stuffer ideas, here are three TSX stocks that could be a good buy this December.
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A TSX financial stock for income, growth, and value
goeasy (TSX:GSY) is an intriguing TSX stock if you are looking for a mix of income, growth, and value. Over the years, goeasy has grown to become one of the largest non-prime lenders in Canada.
Canadian banks have largely exited the riskier non-prime market, leaving ample room for goeasy to take market share across the country. Non-prime loans are undoubtably risky.
However, goeasy has the expertise to underwrite these loans and earn an attractive risk-adjusted return. As Canadian banks continue to tighten lending policy, good borrowers that may not meet their criteria will increasingly flock to goeasy’s platform.
Over the last 12 months, goeasy has increased revenue by 13%. Likewise, net income has increased by 43% to $201 million. The company has grown diluted earnings per share by a 31.9% compounded annual growth rate (CAGR) over the past five years.
This TSX stock yields 2.5% today. GSY increased its dividend by 7% in 2023. It trades for only 13 times earnings, despite its strong growth profile.
A top REIT for value investors
Another interesting TSX stock to consider in December is BSR REIT (TSX:HOM.U). Not many Canadians know about this real estate investment trust because all its properties are in the U.S. BSR operates a portfolio of garden-style multi-family properties in Texas, Arkansas, and Oklahoma.
If you weren’t aware, these are top jurisdictions for population and economic growth in North America. Consequently, they have enjoyed exceptionally high demand for apartment properties. Likewise, market rents have risen considerably.
Right now, the market is a little worried about a supply glut coming online in BSR’s markets. The stock has pulled back on these fears.
If you can look past this, the REIT has a lot to like. HOM.U has a strong balance sheet. Its debt profile is essentially locked in over the next four years. The executive team is highly invested and has a history of making smart and patient capital decisions. The REIT has been buying back a lot of stock.
This TSX stock is yielding 4.75% today. Importantly, it trades at a 36% discount to its private asset value, meaning you are paying 64 cents on the dollar for its assets today. If the direction of interest rates reverts, this stock could have considerable upside.
A TSX retail stock with a great long-term record
Alimentation Couche-Tard (TSX:ATD) stock has been under pressure after reporting its second quarter fiscal 2024. The company hit analyst expectations, but the CEO noted some weakening consumption trends that worried the market. While this is a near-term worry, long-term investors need to look out a bit.
Couche-Tard provides essential goods and services (convenient food and beverages, travel merchandise, cigarettes, and fuels). Over the long term, demand for these services is perpetual. Couche-Tard has found a way to use branding, marketing, and operating expertise to earn above average organic growth and high returns on capital.
In 2024, the company will integrate the large European portfolio acquisition. That should be a near-term catalyst for growth. Beyond that it has an attractive plan to double over the next five years. This TSX stock trades at 17 times earnings, which seems like a fair price today given its growth and quality.
