1 Growth Stock Down 14% to Buy Right Now

When it comes to top growth stocks, investors don’t need to go to some newbie on the market. In fact, this one offers major growth as well as experience.

| More on:
A plant grows from coins.

Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Growth stocks don’t always have to be new, flashy companies. Just take goeasy (TSX:GSY) as an example. This Canadian financial services company has been around for decades but continues to deliver impressive growth. Over the past five years, goeasy’s stock price surged by over 350%, proving that established companies can still generate substantial returns for investors. So, while newer companies may grab headlines, seasoned businesses like goeasy stock show that long-term growth doesn’t always come with youth! So, let’s get into why it’s still a great buy.

Created with Highcharts 11.4.3Goeasy PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

About goeasy stock

goeasy is a Canadian company that has become a key player in the non-prime financial services industry, offering personal loans and other credit products to individuals who may not qualify for traditional bank financing. Established in 1990, goeasy operates through its two primary divisions: easyfinancial, which provides personal loans and lending solutions, and easyhome, which offers furniture, electronics, and appliance leasing. Over the years, goeasy has expanded its services to include home equity loans, point-of-sale financing, and auto loans, positioning itself as a one-stop shop for non-prime borrowers​.

The company is known for its commitment to serving everyday Canadians who need access to credit. Particularly those with non-prime credit scores. This customer-focused approach has helped goeasy stock build a reputation for providing accessible, responsible financial solutions. goeasy stock has also embraced digital innovation. Thus making it easier for customers to apply for loans and manage their accounts online.

Record earnings

goeasy stock has continued its strong earnings momentum into 2024, with record second-quarter (Q2) results that highlight robust growth across its financial services. The company generated $827 million in loan originations, a 24% year-over-year increase. Plus, it has experienced a significant 29% growth in its loan portfolio, now valued at $4.14 billion. This impressive performance led to record revenues of $378 million, up 25% from the same quarter in 2023, thereby reflecting the company’s ability to attract new customers and expand its lending services​.

In terms of profitability, goeasy’s adjusted diluted earnings per share reached $4.10, up 25%. Meanwhile, net income rose 18% year over year to $65.4 million. The company also saw an increase in its operating income, up 33%, and an improvement in its efficiency ratio to 26.9%. With goeasy stock serving over 48,000 new customers in the quarter and securing additional funding to support future growth, the company remains well-positioned to maintain its upward trajectory. As Chief Executive Officer Jason Mullins put it, “We’re proud to serve everyday Canadians with access to credit, driving record loan growth and revised upward forecasts.”

Long-term value

Despite goeasy’s stock being down from its 52-week high of $206.02, it remains a valuable pick for investors. With a market cap of $3 billion and a forward price-to-earnings (P/E) ratio of 8.78, goeasy stock offers a good balance between growth potential and value. The company boasts strong profitability metrics, including a profit margin of 33.4% and a solid return on equity (ROE) of 25.28%, thus reflecting its ability to generate healthy returns for shareholders. The company’s dividend yield of 2.62% also makes it attractive for income-seeking investors. Plus, its payout ratio of 27.7% leaves room for future dividend increases​.

goeasy stock’s fundamentals further bolster its value. It has a 52-week change of 55.43%, which signals strong growth momentum even after its recent pullback. With $225.88 million in cash, the company has a strong liquidity position, which can help weather any short-term volatility. For investors looking at long-term growth, goeasy’s steady loan portfolio growth and expanding market share in non-prime lending reinforce its potential​.

Bottom line

For Canadian investors, goeasy stock presents a strong case as a valuable investment, especially with its stock currently trading below its 52-week high of $206.02. Despite the dip, goeasy’s fundamentals remain solid, showcasing 17.7% earnings growth year over year and a profit margin of 33.4%, indicating its strong financial health. The company’s focus on secured loans and consistent dividend payouts, with a yield of 2.62%, make it a compelling pick for long-term growth and income. With a low forward P/E of 8.78, goeasy stock continues to offer solid value for investors looking to capitalize on its long-term potential​.

Should you invest $1,000 in Cineplex right now?

Before you buy stock in Cineplex, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Cineplex wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

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 Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Dividend Stocks

A worker gives a business presentation.
Dividend Stocks

Navigating Economic Headwinds and Buying the Dip

If you're looking to get in on the markets, but fearful of the market dip, then here's how to navigate…

Read more »

Canadian Dollars bills
Dividend Stocks

A 10% Dividend Stock Paying Cash Every Month

This dividend stock doesn't only offer a massive income, but a variety of investments during this volatile period.

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

Income-generating Stocks That Could Accelerate Your TFSA Growth in 2025

Generate tax-free passive income in your TFSA with these two stocks and grow your wealth.

Read more »

woman looks out at horizon
Dividend Stocks

How I’d Invest $8,500 in Canadian Financial Services to Create a Wealth Legacy

Canada’s financial services sector can help you create a wealth legacy from a less than $10,000 investment.

Read more »

Person holding a smartphone with a stock chart on screen
Dividend Stocks

Is BCE Stock a Buy for its Dividend Yield?

BCE stock looks pretty appealing with a 12% dividend yield, but there's more to consider.

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

TFSA: Invest $15,000 in This TSX Stock and Create $962.55 in Annual Passive Income

If there's one TSX stock to buy right now, it's this long-term hold that's been around for over 100 years!

Read more »

jar with coins and plant
Dividend Stocks

Earn $500 a Month With These 3 Stocks (Possibly Tax-Free!)

These three monthly paying dividend stocks could help you earn a stable passive income of over $500 monthly.

Read more »

A worker drinks out of a mug in an office.
Dividend Stocks

How I’d Structure a $25,000 Portfolio Around These 2 Impressive Dividend Stocks

Here’s how I’d build a dependable income portfolio with just $25,000 by investing in two high-yield TSX dividend stocks built…

Read more »