Mid-cap stocks have a market capitalization between $2 billion and $10 billion. These companies are less risky than small-cap stocks, as they have passed the riskier early development stage. Besides, they offer higher growth prospects compared to large-cap stocks. So, with mid-cap stocks offering the best of both worlds, let’s look at three top Canadian mid-cap stocks that provide excellent buying opportunities.
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goeasy
goeasy (TSX:GSY), which offers leasing and lending services to subprime customers, has expanded its loan portfolio to $4.39 billion since beginning its consumer lending business in 2006. These expansions have consistently boosted its financials, with the company growing its topline and diluted EPS (earnings per share) at an annualized rate of 20.1% and 28.7% over the last five years. Despite these solid growths, the company has acquired just around 2% of the $218 billion Canadian subprime market. So, it has substantial scope for expansion.
Meanwhile, goeasy’s wide product range, geographical expansion, strategic initiatives, and addition of new delivery channels could continue to expand its loan portfolio. The alternative financial services company also raised around $550 million last quarter, raising its funding capacity to $1.8 billion. Along with these growth initiatives, it has also tightened its underwriting requirements and adopted next-gen credit models, which could lower its delinquencies and boost profitability. Amid these growth prospects, the company’s management expects its loan portfolio to grow to $6-$6.4 billion in 2026, with the midpoint representing over 40% growth from its third-quarter levels. Also, its top line could grow at 14% CAGR (compound annual growth rate) through 2026 while improving its operating margin to 42%.
Moreover, the subprime lender has also rewarded its shareholders by raising its dividend at a 30% CAGR for the previous 10 years. It currently offers a forward dividend yield of 2.82%. Considering all these factors, I believe goeasy would be an excellent buy.
Lightspeed Commerce
Lightspeed Commerce (TSX:LSPD) offers various commerce solutions to businesses worldwide. Last week, the company reported its third-quarter performance for fiscal 2025. Its top line grew 17% to $280.1 million, with a solid 23% growth in transaction-based revenue. Meanwhile, its subscription revenue rose 9% to $88.1 million.
During the quarter, it launched several new products and improved payment penetration, expanding its customer base and increasing ARPU (average revenue per user). Its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) increased from $3.6 million to $16.6 million. Its cash flows from operations increased to $2.7 million compared to the cash utilization of $18.2 million in the previous year’s quarters.
Moreover, LSPD has concluded its strategic review process and has decided to continue with its transformation plan, focusing on driving its two growth engines — retail in North America and hospitality in Europe. It is developing new products that could improve forecasting and enhance inventory management and supplier integration for retail businesses in North America. The company is also enhancing the guest experience and optimizing operations for the hospitality sector in Europe. After reporting its third-quarter performance, the company has also raised its fiscal 2025 adjusted EBITDA guidance from $50 million to $53 million. Considering its growth prospects and discounted stock price, I am bullish on LSPD.
Northland Power
As my final pick, I chose Northland Power (TSX:NPI), a monthly-paying dividend stock. This company owns an economic interest in 3.2 gigawatts of clean energy-producing facilities. It sells most of the power generated from these facilities through long-term PPAs (power-purchase agreements), which shields its financials from market fluctuations. Amid these stable cash flows and the expansion of its asset base, the company has grown its adjusted EBITDA at an annualized rate of 5% for the last five years.
Moreover, NPI has several projects under construction, which could expand its power production capacity to 6 gigawatts by 2027. Amid these growth initiatives, the company’s management expects its adjusted EBITDA to grow at a CAR of 7-10% through 2027, thus supporting its dividend growth. Meanwhile, it currently pays a monthly dividend of $0.10/share, translating into a forward yield of 6.99%. Further, the clean energy company’s next-12-month price-to-sales multiple stands at 1.9, making it an attractive buy.
