The TSX Stock I’m Buying Now: It’s a Buy!

Every now and then, the TSX offers long-term investors the opportunity to buy high-quality stocks at a price you simply can’t ignore. It usually happens when short-term factors, market sentiment, or broader economic concerns pull a stock down much more than its fundamentals deserve. And for patient investors who can see the big picture, those moments are often the difference between an average return and a spectacular return.

Even though it sometimes feels like it, you don’t always have to chase risky turnaround plays or speculative stocks to find a bargain.

In fact, if you’re patient, some of the best deals will appear with companies that already have stable revenues, strong competitive positions and proven track records of execution. So if these stocks temporarily fall out of favor, you should seize the opportunity.

The TSX is full of good companies, but only a handful are worth buying based on weakness. The goal is to find companies with sustainable cash flow, manageable debt and a clear growth path. If the stock is trading below its typical valuation and mispriced due to short-term noise, that’s the kind of opportunity that rarely lasts long.

So if you’re looking for a TSX stock to buy while you can get it for a bargain, here’s why I’d strongly encourage investors to consider it: easy (TSX:GSY).

One of the best dividend growth stocks to buy on the TSX

While many investors know goeasy as a growth stock with an impressive rally in recent years, it is actually also one of the best dividend growth stocks you can buy on the TSX. And right now, its pullback has created one of the best opportunities investors have seen in years.

goeasy is a leader in non-prime consumer lending, with a long, multi-year track record of strong loan growth, growing revenues, consistent profitability and impressive returns on equity. But in recent months, a combination of short-term issues have pushed the stock price well below what fundamentals suggest.

The recent push began when a report on short sellers surfaced, raising concerns about delinquencies and credit losses. goeasy quickly denied the allegations, calling the claims misleading, and management reiterated confidence in the strength of its loan portfolio. Still, the market reacted sharply and shares fell as sentiment changed.

When the company subsequently announced its latest quarterly results, revenues remained strong, but profits fell slightly short of expectations due to higher loan impairments. Management acknowledged a cautious macro environment and emphasized that credit conditions have tightened, especially for unsecured borrowers. This more conservative tone, along with the higher credit loss margin, created further selling pressure as investors focused on near-term earnings volatility.

Therefore, it is understandable why goeasy shares were sold. However, it cannot be justified how far this has fallen. This is exactly where the opportunity lies. Analysts note that goeasy continues to expand lending at a healthy pace, maintains stable repayment rates and is still on track for long-term expansion, even if the coming quarters are noisier than normal.

Although goeasy generated adjusted earnings per share of $4.12 in the third quarter, compared to consensus expectations of $4.68, it still generated more than $16 in adjusted earnings per share over the last twelve months, which is more than enough to cover its annual dividend of $5.84.

So while goeasy trades at just 6.9 times forward earnings and offers a current price yield At 4.3%, it’s easily one of the best TSX stocks to buy right now.