Investing in Canadian mid-cap stocks can be a savvy move for those looking to balance growth potential with stability. But with so many options, how do investors even start? Today, let’s take a closer look at three standout companies that are making waves in their respective industries: goeasy (TSX: GSY), Cargojet (TSX: CJT), and Exchange Income (TSX: EIF).
Source: Getty Images
goeasy
First, goeasy stock has been on a remarkable growth trajectory. In the third quarter (Q3) of 2024, the Canadian stock reported record loan originations of $839 million — a 16% increase from the same period in 2023. This surge led to a 19% rise in revenue, reaching $383 million. Net income also saw a significant boost, climbing 28% to $84.9 million.
The Canadian stock’s loan portfolio expanded to $4.39 billion, up 28% from the previous year. It offers a diversified lending approach encompassing unsecured loans, home equity lending, point-of-sale financing, and automotive financing. Thus, goeasy is well-positioned to cater to a broad spectrum of consumers.
Looking ahead, goeasy’s focus on enhancing its credit models and underwriting practices, coupled with a growing proportion of secured loans, suggests a commitment to maintaining stable credit performance. The Canadian stock’s strategic initiatives and robust financial health make it an attractive option for investors seeking exposure to the financial services sector.
Cargojet
Next, Cargojet, Canada’s leading provider of time-sensitive air cargo services, demonstrated impressive performance. In the third quarter of 2024, the Canadian stock reported a 15% increase in revenue, reaching $245.6 million. That’s compared to $214 million in the same period the previous year. Net earnings more than doubled, soaring to $29.7 million from $10.5 million in Q3 2023.
The Canadian stock’s strategic partnerships, such as the long-term agreement with DHL to provide global air transportation services, are expected to be accretive to earnings and cash flows over time. Plus, Cargojet’s focus on optimizing operations, evidenced by a nearly 15% increase in block hours with no change in fleet size, highlights its commitment to efficiency and customer satisfaction.
With the rise of e-commerce and the increasing demand for rapid delivery services, Cargojet is well-positioned to capitalize on these trends. The Canadian stock’s robust network and strategic initiatives suggest a promising outlook for sustained growth.
Exchange Income
Exchange Income is a diversified company with interests spanning aviation, aerospace, and manufacturing. The Canadian stock’s strategy of acquiring profitable, well-established companies has contributed to its steady growth and stable cash flows.
The Canadian stock’s historical performance indicates a pattern of resilience and adaptability. Its diversified portfolio helps mitigate risks associated with any single industry, providing a balanced approach to growth and income. Investors may find the company’s consistent dividend payouts appealing, reflecting a commitment to returning value to shareholders. As the company continues to identify and integrate new acquisitions, it is poised to maintain its growth trajectory.
Bottom line
For investors seeking opportunities in the Canadian mid-cap space, goeasy, Cargojet, and Exchange Income offer compelling cases. Each company, with its unique strengths and strategic initiatives, presents a blend of growth potential and stability. As always, it’s prudent to conduct thorough research and consider individual investment goals when making decisions.
