Investors planning to invest $3,000 in February could consider goeasy (TSX:GSY) and Shopify (TSX:SHOP). These Canadian stocks have fundamentally strong businesses and promising growth prospects. Moreover, these stocks will likely diversify your portfolio and enhance overall returns. Further, with inflation showing signs of stabilization and interest rates on a downward trajectory, the investment environment is becoming increasingly favourable for these TSX stocks. Let’s take a closer look.
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goeasy
Canadian investors seeking value, income, and growth could add goeasy stock to their portfolios in February. goeasy offers leasing and lending services targeting subprime borrowers. Thanks to its leadership in Canada’s non-prime lending market, wide product range, and solid underwriting capabilities, goeasy consistently delivers solid financials supporting higher dividend payments and its share price.
It’s worth noting that this financial services company’s revenue grew at a compound annual growth rate (CAGR) of 20.1% in the last five years (as of September 30, 2024). Moreover, its bottom line growth is even better. For instance, goeasy’s adjusted earnings per share (EPS) grew at a CAGR of 29% during the same period.
goeasy has consistently rewarded its shareholders with higher dividend payments thanks to solid earnings. Moreover, goeasy stock has gained over 179% in the last five years, delivering an average annualized return of 22.7%.
goeasy’s omnichannel offerings, diversified sources of funding, and geographic and product expansion will drive its top-line growth in the coming years. Higher revenue, its focus on higher-quality loan originations, and solid credit performance will lead to double-digit earnings growth. In summary, goeasy stock is poised to deliver solid growth and income over the next two decades. Overall, goeasy is poised to deliver solid financials, which will likely support its future dividend and share price growth.
Shopify
Shopify is another compelling stock to buy and hold. The Canadian tech giant consistently delivers solid financials led by its growing merchant base and innovative product offerings. Thanks to its integrated platform and new product launches, Shopify is well-positioned to capitalize on the shift toward multi-channel commerce.
Shopify has maintained double-digit growth in gross merchandise volume (GMV) over the past several quarters, leading to solid growth in its revenue and operating income. Moreover, Shopify’s growing adoption of payment solutions allows it to process a larger portion of GMV through its own payment products, creating a scalable growth path.
The commerce platform provider is also expanding sales and marketing channels through partnerships with major social media and payment platforms. This will enable Shopify to continue to attract new merchants while strengthening relationships with existing ones. Further, the company is well-positioned to capture opportunities in offline retail and B2B channels, which should further bolster its financial performance. Moreover, international expansion offers a significant avenue for growth, as markets outside North America are growing rapidly.
The leverage from higher sales, Shopify’s investment in artificial intelligence technology to optimize operations, and its strategic shift to an asset-light business will likely cushion its margins and drive long-term profitability.
Overall, Shopify will likely deliver solid financials led by higher demand for its platform and solutions. Moreover, easing inflation and a lower interest rate environment augur well for growth.
