It’s been a year of redemption for many stocks on the TSX. After a disappointing year for the stock market in 2022, Canadian investors have been able to breathe a sigh of relief this year. But despite the strong year that lots of TSX stocks have enjoyed in 2023, many continue to trade far below all-time highs from 2021.
Short-term bearish; long-term bullish
As a growth investor, I’ve welcomed the gains this year with open arms. I have had zero complaints seeing my growth stocks return to their market-beating ways. That being said, I remain a very cautious optimist. I still have my concerns about the economy’s health — in the short term, at least. As a result, I’m not expecting volatility to slow down just yet.
As volatile and uncertain as the stock market may seem today, now could be an incredibly opportunistic time for long-term investors to load up. Don’t let the fact that many growth stocks are up huge this year keep you on the sidelines. There are still plenty of deals still to take advantage of.
Growth investors with some cash to spare would be wise to have this discounted stock high up on their watch list right now.
goeasy
This under-the-radar growth stock is not rivalled by many when it comes to market-beating returns. The $2 billion company has quietly been one of the top-performing stocks on the TSX in recent years. Shares are up more than 700% over the past decade. And that’s not even including dividends, either.
goeasy (TSX:GSY) is currently down more than 40% from all-time highs that were set in late 2021. While that may seem like a significant selloff in a relatively short period, it’s important to keep in mind that goeasy was up more than 80% in 2021.
A stock price correction may be one reason why goeasy is down so far below all-time highs today. The high-interest-rate environment is certainly another reason. As a consumer-facing financial services provider, it’s not surprising to hear that goeasy has experienced a slowdown in demand with interest rates as high as they currently are.
Unfortunately, interest rates do not look like they will be dropping to pre-COVID levels anytime soon. However, there’s a solid argument to make that they are not sustainable at these levels. And when they do eventually drop, goeasy should see that demand return, making it an opportunistic time for anyone with a long-term time horizon to invest right now.
Foolish bottom line
It’s never easy investing during volatile market periods. But it’s in these uncertain times that the can’t-miss buying opportunities present themselves.
Aside from the COVID-19 market crash in 2020, goeasy has not gone on sale like this over the past decade. And we all know how well the stock rebounded from its 60% drop in 2020. Today, shares of goeasy are up more than 300% from their lows of the COVID-19 market crash.
If you’re willing to be patient, goeasy is a proven winner that’s facing a short-term headwind. I don’t think it will be long before this top growth stock is back to largely outperforming the market’s returns.
