The S&P/TSX Composite Index is up about 22% over the past year. This uptrend in the benchmark index reflects solid growth in top Canadian stocks. Despite the notable increase in value, shares of a few fundamentally strong companies have significant room for growth. Against this background, let’s look at my top TSX stocks that are a buy right now.
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Bombardier stock
Bombardier (TSX: BBD.B) is a top TSX stock to buy right now. The company manufactures business jets and has an extensive aftermarket and support facilities network. Further, it is steadily expanding its defence portfolio, a move that could bolster its growth prospects.
Bombardier’s refreshed portfolio and focus on medium and large business jets are witnessing solid demand, which is driving its top line. The company’s revenue rose 11% compared to last year, driven by increased aircraft deliveries and higher selling prices. Further, services revenue remained strong.
Looking ahead, easing inflation, potentially lower interest rates, and steady growth in developed economies suggest that Bombardier could be well-positioned to capitalize on favourable business conditions. These factors are likely to support sustained demand for its business aircraft, leading to higher deliveries and pricing.
Bombardier is also expanding its services, defence, and pre-owned aircraft divisions, which is expected to diversify its revenue, add predictability to its business, and improve profitability. By 2030, these segments could make up nearly 50% of Bombardier’s revenue.
In addition to growth initiatives, Bombardier is also concentrating on strengthening its balance sheet. The company is optimizing liquidity and working to reduce its net debt, which provides financial flexibility to capitalize on growth opportunities.
goeasy stock
goeasy’s (TSX: GSY) attractive valuation, solid growth prospects, and focus on rewarding shareholders with dividend increases make it a top TSX stock to buy and hold right now. Shares of this subprime lender have consistently outperformed the benchmark index due to its high and profitable growth.
goeasy’s top and bottom lines have increased at a compound annual growth rate (CAGR) of over 20% in the past decade. Thanks to its solid financials, goeasy stock has grown at a CAGR of over 25% in the last 10 years, delivering a capital gain of approximately 861%. Moreover, goeasy has consistently increased its dividend during this period, enhancing its shareholder value.
The momentum in goeasy’s top line has accelerated in 2024, with the company marking a 25% year-over-year increase in the first half. Moreover, its adjusted earnings per share (EPS) rose 24% year over year. goeasy is focusing on expanding its geographic and channel footprint, which will position it well to maintain its leadership in the large subprime lending market and capitalize on demand. Further, its diversified funding sources and multi-product strategy augur well for future growth.
goeasy’s growing sales, solid credit underwriting, and steady credit and payments performance will likely cushion its margins. Further, operational efficiency will drive its earnings and enable goeasy to increase its future dividend.
While goeasy stock offers high growth, it trades at the next 12-month price-to-earnings multiple of 9.5, which is attractive considering its double-digit earnings growth and a decent dividend yield of 2.7%.
