Written by Sneha Nahata at The Motley Fool Canada
As most top TSX stocks have lost substantial value and are trading at a discounted price, now is an excellent time to start a long position in them. Further, given the massive selling, the downside risk remains limited, despite the uncertainty. Also, the easing of inflation and any improvement in the economic environment will give a significant boost to fundamentally strong high-growth stocks.
So, if you plan to invest and can spare $5,000, here are the best TSX stock worth considering.
goeasy (TSX:GSY) is a must-have stock in a long-term portfolio to outperform the broader market by a wide margin. This consumer finance company has a solid history of delivering profitable growth, which has increased its stock price.
Thanks to its stellar growth, goeasy stock has gained about 308% in five years. For instance, its top line has increased at an average annualized growth rate of 15.9% in the past decade. Moreover, its adjusted net income has a CAGR (compound annual growth rate) of 33.6% during the same period. This growth comes, despite the significant correction in goeasy stock in 2022.
The pullback in goeasy stock seems unwarranted, especially as it continues to grow at a solid pace in 2022. It’s worth highlighting that the momentum in goeasy’s business has sustained, with its top line growing by 26% in the nine months of 2022. Further, its adjusted net income increased by 11%. What stands out is the high-quality loan origination that provides confidence about its future credit performance.
Its wide product range, higher loans, cross-selling, and omnichannel distribution channels will support its revenues. Moreover, stable credit performance and operating leverage will cushion its earnings. goeasy is also a top dividend stock that has raised its dividend for eight consecutive years. Moreover, its growing earnings base indicates that goeasy could continue to hike its dividend at a healthy pace.
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