The stock market has remained volatile on fears that rising tariffs could tip the economy into a recession. However, one of the positives from the sell-off is that investors can buy high-quality Canadian stocks at a discounted price. If you’re considering deploying $1,000 in April 2025, here are the top two fundamentally strong TSX stocks to buy now.
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Shopify
Shopify (TSX:SHOP) stock has dropped over 24% year-to-date and about 37% from its 52-week high of $183.53, driven by concerns about a broader economic slowdown and its potential impact on consumer discretionary spending. Despite the pullback, Shopify’s fundamentals remain strong, making it an attractive long-term bet.
Shopify has delivered consistent revenue growth of 25% or more for seven straight quarters, excluding logistics. Its free cash flow margin steadily improved throughout 2024, hitting 22% in Q4. Moreover, Shopify’s gross merchandise volume (GMV) grew 24% year-over-year in 2024, marking its fastest pace in three years.
Shopify will benefit from its ability to attract larger, high-volume brands and its growing merchant base. It is also tapping into the B2B market, growing its international presence, and seeing momentum in offline retail. These factors will drive its GMV, product adoption, and overall financials.
Further, Shopify’s focus on operational efficiency and asset-light business model will continue to strengthen its bottom line and support long-term growth.
goeasy
goeasy (TSX:GSY) has pulled back from recent highs, creating a potential buying opportunity for investors seeking a high-growth, dividend-paying stock at a discounted valuation.
The Canadian subprime lender has a strong track record of delivering solid financials. Its top line has grown at a compound annual growth rate (CAGR) of 20.1% over the past five years. Even more impressive, its earnings per share (EPS) have grown at a CAGR of 28.1% during that time, outpacing revenue growth, supporting its share price, and driving its dividend.
Notably, goeasy stock has grown at a CAGR of 37.5% in the last five years, delivering an overall capital gain of about 393%. Further, it has uninterruptedly paid dividends for 21 years and consistently increased its dividend for 11 consecutive years.
Looking ahead, the momentum in goeasy’s business will likely sustain as the company continues to expand its consumer loan portfolio, generate solid loan yields, and enhance its product offerings and distribution channels. It’s also diversifying its funding base to tap deeper into Canada’s large subprime lending market. These efforts will support continued growth in loan originations and revenue.
goeasy’s also focused on risk-based pricing to improve borrowing affordability while maintaining profitability. Although this move will impact loan yields in the short term, it’s likely to strengthen customer loyalty and support long-term margin expansion. Management is confident enough to forecast a 100-basis-point improvement in operating margin in 2025, followed by a further 150-basis-point gain in 2026.
Despite its robust outlook, goeasy trades at a modest forward price-to-earnings (P/E) ratio of just eight. That’s a bargain for a company delivering consistent double-digit earnings growth. Combine that with a solid 3.7% dividend yield and an impressive 26.4% return on equity, goeasy’s value proposition becomes hard to ignore.
