There have been few stocks as successful as goeasy (TSX:GSY) over the last year. The alternative financial services company has seen shares climb by 47% in the last year alone, after all. However, they remain lower than their all-time highs achieved just a few short years back.
So, is the stock headed in that direction any time soon? Or is it too late to buy goeasy stock?
Around for a while
Part of the appeal of goeasy stock is that the company has been around for quite some time. goeasy stock came on the market back in 1993 through a reverse takeover. At that time, it was leasing furniture. It then went on to rebrand as easyhome, leasing and renting out furniture across Canada.
However, since then, the company expanded even further with easyfinancial, creating the goeasy stock that we know today. It now provides loans of every kind, expanding to achieve record loan originations quarter after quarter even up to today.
In fact, we’re now at a time when interest rates are sky high, causing companies like goeasy stock to be expected to fall. However, that hasn’t been the case! Should the company start to slow down?
goeasy doesn’t think so
It seems that management expects goeasy stock to continue climbing. The company recently renewed its normal course issuer bid to buy back shares. The company is now able to purchase for cancellation up to 1,270,245 common shares, about 10% of its float.
Analysts tend to agree, posting the stock as an outperformer in the market as of writing. The company is now positioned to see a strong three-year loan growth forecast, exceeding even higher estimates. This is supported by more record loan originations and stable credit performance.
Of course, there remains risk in the near term from credit cycles, but overall, goeasy stock has proven to have a strong management team. One that knows how to execute successfully against its three-year guidance. There should, therefore, be no issues demonstrating stable credit performance and seeing even more loan growth initiatives.
Bottom line
So, is goeasy stock a buy? Absolutely. Even as shares rise higher, goeasy stock continues to trade at a valuable 13.67 times earnings, valuable compared to the sector as a whole. It also offers a dividend yield of 2.37% as of writing, with a healthy 32% payout ratio.
On top of all this, analysts peg goeasy stock as achieving a potential consensus price target of $174 as of writing. Shares currently trade at $162 at the time of writing, creating a potential upside of 7% for today’s investors.
Therefore, investors could achieve significant passive income by investing for returns and adding dividends as well! Therefore, goeasy stock is one that simply ticks all the boxes. The company has been trading higher and higher in the past year but remains in value territory. It offers a strong dividend and growth opportunities. And finally, there seems to be no slowing down when it comes to the company’s record loan originations. So, you can feel safe buying goeasy stock in bulk.
