Breaking News
Investing Pro 0
⏰ Save Valuable Time with Faster Stock Data & Tools Go Pro Now

Why goeasy (TSX:GSY) Stock Fell 6.2% Last Week

Stock Markets Apr 25, 2022 08:15
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. Why goeasy (TSX:GSY) Stock Fell 6.2% Last Week
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio

goeasy (TSX:TSX:GSY) is a Mississauga-based company that provides non-prime leasing and lending services to Canadian consumers. Shares of this top TSX stock have plunged 33% in 2022 as of close on April 22. It dropped 6.2% over the past week. Today, I want to discuss why this exciting stock has lost momentum in the first half of 2022. Moreover, I’ll make a recommendation on its prospects going forward. Let’s dive in.

How goeasy stock rose to new heights to start this decade The COVID-19 pandemic spooked investors and ignited a massive stock selloff in February and March of 2020. At the time, I’d suggested that goeasy was one of the top TSX stocks to snatch up on the dip. Indeed, its stock would fall below the $30/share mark at one point in the middle of March 2020.

Fortunately, loosening monetary policy and radical government spending managed to renew confidence in global markets. Meanwhile, goeasy remained perfectly positioned to grow in the current environment. Shares of goeasy would hit an all-time high of $218.35 in September 2021. That meant that investors who timed their purchase well could have seen their initial investment grow by more than seven times its original value.

Here’s why this top TSX stock has lost momentum in April goeasy unveiled its fourth-quarter and full-year 2021 earnings on February 16, 2022. It announced that it had funded $1.59 billion in loan originations — up 59% from the $1.03 billion it booked in 2020. Meanwhile, its consumer loan receivable portfolio increased 63% to $2.03 billion. The company achieved record revenues of $827 million, which was up 27% from the prior year.

This company continued to post very impressive results at easyfinancial and easyhome. Overall, this represented the 47th straight month of same-store revenue growth. Moreover, its total active customers rose to over 300,000.

Investors also got a glimpse of its outlooks for 2022 through to 2024. The company expects total company revenue between $970 million and $1 billion this fiscal year. Meanwhile, it projects that it will open 15-20 additional easyfinancial locations.

It is hard to find flaws with goeasy’s earnings performance in 2021. Indeed, investors should be very excited about its future. However, it will also be susceptible to volatility and the crunch that will come with interest rate hikes. This may bolster goeasy’s profit margins, but it will likely limit credit growth, as Canadians find themselves increasingly squeezed by high debt and soaring inflation.

Should investors look to buy the dip in goeasy today? Nearly a year ago today, I’d discussed why goeasy was one of my favourite TSX stocks to snatch up for the future. That is still my take today. However, investors need to prepare for its shares to battle turbulence in the near term.

Shares of goeasy currently possess a very favourable price-to-earnings ratio of eight. It last had an RSI of 34, putting it just outside technically oversold territory. Moreover, it offers a quarterly dividend of $0.91 per share, representing a 3% yield. The company has delivered eight consecutive years of dividend growth. That makes goeasy a Dividend Aristocrat.

The post Why goeasy (TSX:GSY) Stock Fell 6.2% Last Week appeared first on The Motley Fool Canada.

Fool contributor Ambrose O'Callaghan owns goeasy Ltd. The Motley Fool has no position in any of the stocks mentioned.

This Article Was First Published on The Motley Fool

Why goeasy (TSX:GSY) Stock Fell 6.2% Last Week

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email