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The S&P/TSX Composite Index moved up 37 points to close out the previous week on Friday, April 7. Some of the best-performing sectors included health care, battery metals, and utilities. Today, I want to look at two TSX stocks that are reeling to start the 2023 spring season. However, these are also two equities that I’d love to scoop up at their current value for a long-term hold. Let’s jump in!
Here’s a dirt-cheap TSX stock that still has huge growth potential
goeasy (TSX:GSY) is a Mississauga-based company that operates through three business segments; easyfinancial, easyhome, and LendCare. easyfinancial offers loans to non-prime borrowers, easyhome sells furniture and other durable goods on a lease-to-own basis, and LendCare provides point-of-sale consumer financing. Shares of this TSX stock have plunged 17% month over month as of close on April 7. That has dragged the stock into negative territory in the year-to-date period.
Investors can expect to see goeasy’s first-quarter (Q1) fiscal 2023 earnings in the first half of May. In Q4 2022, the company reported loan origination growth of 25% to $632 million, which was bolstered by higher unsecured lending, home equity loans, point-of-sale lending, and automotive financing. This powered adjusted diluted earnings-per-share (EPS) growth of 11% to $3.05 in the fourth quarter.
For the full year, goeasy saw its loan portfolio increase 38% to $2.79 billion. Moreover, annual adjusted diluted EPS climbed 11% to $11.55. Looking forward, goeasy expects total company revenue to hit between $1.15 billion and $1.25 billion in fiscal 2023 after rising to $1.01 billion in fiscal 2022. This TSX stock also qualifies as a Dividend Aristocrat, having delivered nine straight years of dividend growth.
The Relative Strength Index (RSI) is a technical indicator that measures the price momentum of a given security. goeasy last had an RSI of 26, putting this TSX stock in technically oversold territory. Its shares also possess a favourable price-to-earnings (P/E) ratio of 11. Moreover, the stock offers a quarterly dividend of $0.96 per share. That represents a solid 4% yield.
This is a TSX stock I love for its value and top-shelf income
Northwest Healthcare REIT (TSX:NWH.UN) is the second TSX stock I’d look to snatch up throughout the month of April. This real estate investment trust (REIT) owns and operates a global portfolio of high-quality global healthcare real estate. Shares of this TSX stock have dropped 11% over the past month. The stock is now down 13% so far in 2023.
This REIT released its Q4 and full-year fiscal 2022 earnings on March 31, 2023. In Q4 2022, Northwest delivered revenue growth of 23% to $118 million. Meanwhile, same-property net operating income (NOI) rose 2.9% on the back of annual rent indexation. Moreover, Northwest maintained strong portfolio occupancy of 97% while the international portfolio held at 98.3%. Total assets under management increased 18% to $10.9 billion.
For the full year, the REIT delivered net property operating income of $348 million — up from $289 million in fiscal 2021. Same-property NOI increased 2.7% year over year to $263 million.
Shares of this TSX stock last had an RSI of 24. That puts Northwest in technically oversold levels at the time of this writing. The REIT offers a monthly distribution of $0.067 per share, which represents a monster 9.7% yield.
