Canadian stocks have performed admirably in 2024. The TSX Index is up 16% year to date! While the market is starting to look pricey, you can still find stocks that provide growth at a reasonable price (GARP). If you’ve got $5,000 to invest, here are four quality Canadian stocks for growth and value.
Source: Getty Images
goeasy: A top stock for income and growth
goeasy (TSX: GSY) has delivered exceptional returns for shareholders over the long term. This Canadian stock is up 227% in the past five years and 713% in the past 10 years. Throw in the dividends this stock has generated and it would have delivered, respectively, 277% and 949% total returns.
Despite its run, there are plenty of reasons to believe this stock has room for more growth. It is expanding its lending portfolio to automobiles, recreational vehicles, buy now-pay later, and even healthcare/cosmetic procedures. It is also expected to launch a credit card product that will significantly expand its addressable market in 2025.
With a 2.5% yield and a price to earnings (P/E) ratio of less than 10, this Canadian growth stock looks attractive even today.
Propel: A top growth story
Propel Holdings (TSX: PRL) operates in the same non-prime lending market as goeasy. However, with a market cap of only $1.1 billion, this stock is smaller.
Likewise, with growth opportunities in Canada, the United States, and the U.K. (once it completes its acquisition of QuidMarket), it could substantially expand.
Propel uses a proprietary A.I. platform to effectively underwrite its small loans. Given its loans are largely online or operated through partners, it can scale very quickly. The non-prime lender has been growing revenues by 30%-plus over the past five years. Profit margins continue to expand.
While Propel is up 224% in the past five years, this Canadian stock is growing so quickly that its forward valuation is no stretch at only 13 times earnings.
Trisura: Growth at a fair price
Trisura Group (TSX: TSU) is another mid-cap Canadian stock that could outperform in the years ahead. Trisura provides specialty insurance and insurance fronting across Canada and the United States.
Trisura underwrites niche products. That allows it to earn above-average margins and returns on equity. The stock has been a great performer longer term. TSU stock is up 475% in the past five years.
Last year, Trisura was hit by a program write-down that masked the growth in its broader business. That issue is largely in the past. The market has yet to recognize that the business is postured for strong forward growth.
Most analysts are expecting it to grow by a mid-teens rate in the years ahead. With a mid-teens P/E ratio, this Canadian stock trades at an attractive value to its growth rate.
Calian: A value-priced Canadian growth stock
Calian Group (TSX: CGY) is the value pick in this mix. For the first nine months of its fiscal 2024 year, the company has grown revenues by 17% and earnings before interest, tax, depreciation, and amortization (EBITDA) by 38%!
This Canadian stock has been executing well. It purchased a nuclear services business that is winning some big contracts and expanding its service base. Likewise, it had some major customer wins in its healthcare business and training segment.
One of its major customers is the Canadian military. Despite geopolitical conflicts across the world, the Canadian government just cut the military budget by $1 billion in 2024. It is a near-term headwind for the business. The stock fell 12% after Calian’s recent third quarter.
You can nab this Canadian stock for only 10 times earnings. For a company that has been growing revenue and EBIDTA by a 15%-plus rate, now is a great time to buy.
