A temporary setback does not necessarily mean a bankrupt company. Sometimes it reflects short-term pressures, while long-term growth prospects remain intact. And easy (TSX:GSY) could be a good example of a high-quality growth stock that is temporarily out of favor. In this article I discuss why goeasy fits this mindset and why this top TSX The stock still looks attractive today.
The smartest TSX stock to buy right now
When you look beyond the recent price action and focus on what the company is actually doing, goeasy becomes hard to ignore. Simply put, as a Canadian consumer lender, it focuses on almost non-prime borrowers through brands such as easyfinancial and easyhome. The financial services provider offers unsecured and secured installment loans, point-of-sale financing and leasing solutions across Canada. This is one of the key reasons why demand for its services tends to remain resilient even when economic conditions are less supportive.
From a market perspective, goeasy’s stock trades around $125 per share, giving the company a market cap of around $2 billion.
Although GSY stock is down about 31% in the past year, this largely reflects investor concerns about credit risk and interest rates, rather than a collapse in business. At the same time, the company continues to reward shareholders with a juicy annualized dividend yield of approximately 4.5%, backed by more than two decades of consistent dividend payments.
Why does it look mispriced now?
To understand why this TSX stock appears mispriced, let’s look beyond the share price and focus on operating momentum. In the third quarter of 2025, goeasy generated $946 million in new loans, up 13% year-over-year (YoY). This growth was supported by a 22% increase in credit applications, showing that consumer demand for credit remained strong.
Additionally, revenue during the quarter increased 15% year-over-year to a record $440 million, driven by portfolio growth and strong performance in unsecured loans, home loans and auto financing. However, profitability was under pressure. The company increased loan loss provisions due to higher early-stage delinquencies amid continued macroeconomic pressure on borrowers.
This resulted in a decline in goeasy’s quarterly profits, but the decline was related to a focus on conservative credit management and higher non-cash adjustments, rather than a slowdown in credit demand or revenue generation.
Why goeasy’s long-term growth story looks strong
Interestingly, goeasy has been actively shifting its portfolio towards lower risk products. Secured loans now represent approximately 48% of the loan portfolio, which will help reduce credit volatility over time. The company also continues to enhance underwriting, collections and credit support programs, which support portfolio quality throughout economic cycles.
From a balance sheet perspective, goeasy ended the last quarter with $2.3 billion in available financing capacity, providing flexibility to support future growth. The company expects its loan portfolio to continue to grow using only internal cash flows, even without relying heavily on new external debt.
Given these fundamentals, for investors with $500 to invest, goeasy offers a solid mix of income, long-term upside potential, and a valuation that already reflects a lot of near-term risk. As economic conditions stabilize over time, the gap between company performance and stock price can narrow significantly.
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