The Canadian stock market has been on an impressive run, with the TSX Composite Index surging well over 20% in the past year. However, ongoing U.S.-Canada trade tensions and monetary policy uncertainties could lead to market volatility in 2025. Despite these challenges, some overlooked growth stocks are well-positioned to continue delivering strong returns.
Among them, goeasy (TSX:GSY) and Imperial Oil (TSX:IMO) stand out as potential market leaders of tomorrow. With strong fundamentals, growing market opportunities, and a track record of delivering reliable dividends, these growth stocks could be great additions for long-term investors. In this article, I’ll explain why these two companies deserve more attention and could see a stronger rally in the years to come.
goeasy stock
Let’s begin with goeasy. It isn’t just another financial services firm but one of Canada’s top non-prime lenders, which helps consumers with less-than-perfect credit get access to loans. The company operates through its easyfinancial and easyhome segments to offer everything from unsecured and secured installment loans to lease-to-own products.
After rallying by over 50% in the last two years, GSY stock currently trades at $166.77 per share with a market cap of about $2.8 billion. And investors also get a little extra incentive with its annualized dividend yield of 2.8%.
But what makes goeasy stock really attractive is its long-term growth strategy. The company continues to expand its loan offerings, especially in automotive and home equity lending, which saw strong demand in recent quarters. It’s also improving its credit models and underwriting practices, keeping loan losses in check while growing its customer base at the same time.
With a strong track record of growth and an expanding suite of financial services, goeasy continues to be a top Canadian firm in the non-prime lending space. If you’re looking for a growth stock with proven performance and future upside, GSY stock is one to watch.
Imperial Oil stock
Now, let’s look at another top Canadian growth stock, Imperial Oil. This energy giant is one of Canada’s top integrated oil companies with a focus on oil sands production and refining and marketing petroleum products.
After rallying by around 25% over the last year, IMO stock currently trades at $98.18 per share, giving the company a solid market cap of $50.1 billion. And if you’re into dividends, it’s got an annualized yield of 2.93%.
Despite recent oil price fluctuations, Imperial posted a net profit of $1.26 billion in the fourth quarter of 2024. Its upstream operations during the quarter hit a 30-year production record, reaching 460,000 barrels per day with the help of stronger output at its Cold Lake and Kearl assets. Interestingly, its refineries were running at 95% capacity to keep fuel supplies steady. Last quarter, Imperial also returned $1.8 billion to shareholders through dividends and share buybacks.
As Imperial continues to focus on aggressive expansion, its long-term financial growth outlook remains strong. One of the company’s major renewable diesel projects is on track for mid-2025, which is expected to boost its low-carbon fuel production. In addition, its cost-cutting efforts and improved production efficiencies are helping it stay competitive. So, if you’re looking for a stock with strong long-term upside, Imperial Oil is worth considering.
