With the Canadian stock market humming nicely, those who are overweight cash may wish to pursue some intriguing stocks before they have a chance to really make up for lost time. In this piece, we’ll consider three impressive stocks that have a good amount of newfound momentum that I think are likely to continue their runs over the next year (and beyond).
Indeed, macro headwinds may have weighed them down in recent years, but as inflation falls with interest rates and the consumer has a chance to improve, I view the following firms as intriguing candidates to buy on recent strength.
Though I’m a bigger fan of buying stocks on dips, some of the following names may just make sense to buy high with the intent of selling higher. And if you’re in it for the long run, perhaps the following stocks may make for great multi-year or even multi-decade holds.
goeasy
goeasy (TSX: GSY) is a great Canadian alternative lender that enjoyed a massive parabolic spike in the back half of last year before eventually settling into a narrow range in 2024.
Over the past year, shares shot up an incredible 71%. Despite the scorching recent momentum, shares are still well off their all-time highs, and the stock still looks like a solid value option, perhaps even a deep value play. As consumers begin to feel better about raising consumer debt to spend on needs and wants, goeasy is a prime play to pick up. Undoubtedly, the last thing many Canadian consumers need is more discretionary debt.
Regardless, I think an easing of macro conditions and perhaps post-inflationary disinflation could be enough to cause many folks to take advantage of potentially lower prices on goods they’ve been meaning to buy over the past few years. And, of course, goeasy is a great way to play first-time millennial homebuyers who will need to furnish their new places, even if they don’t have the funds to do so, with their hefty monthly mortgage payments weighing down their budgets.
All considered, goeasy has intriguing catalysts and for 11.18 times trailing price to earnings (P/E), I find it a financial that’s a bargain hiding in plain sight on the TSX Index.
Boyd Group Services
Boyd Group Services (TSX: BYD), formerly Boyd Group Income Fund, is another lesser-known mid-cap Canadian company that corrected around 12% after soaring to hit new highs north of $307 per share.
The $6 billion company is in the business of auto body repair services. It’s a stable business and one that’s been perfected by Boyd as it’s acquired and optimized numerous repair shops across the continent. Indeed, Boyd is a great growth-by-acquisition story and one that may be neglected by Canadian growth investors.
The stock trades at 51.1 times trailing P/E at writing. Still, a high price to pay for a firm that can grow in the high teens for quite some time. In any case, I think the recent correction could produce an entry point for those keen on growth to be had from the low-tech name.
