Forget Bitcoin: This TSX Stock Is Up 325% Since April 2020
Cryptocurrency investors made money last year. The price of a Bitcoin has risen 700% since April 2020. This means that a $ 5,000 investment in the most popular digital currency 12 months ago would have been worth almost $ 40,000 today.
This price increase was driven by the widespread adoption by institutional investors, including You’re here and Microstrategy, among others.
However, investors should understand that investing in the crypto space comes with significant risks. It is a very volatile asset class and Bitcoin has lost almost 90% of its market cap on several occasions over the past decade. The lack of regulation and the associated risks make Bitcoin a high risk investment.
In fact, several Bitcoin ETFs have warned investors to only invest as much capital as they can afford to lose. While it is exciting to invest in this highly disruptive space, investors may also be looking to buy and hold quality growth stocks such as kid (TSX: GSY) who have increased wealth at an exponential rate.
goeasy’s stock increased 325% last year
Goeasy’s shares have returned 325% since April 2020 and have risen 1,340% in the past 10 years. This company provides low cost leasing and loan services through its easyhome and easyfinancial businesses. It offers a diverse range of financial products, including secured and unsecured installment loans. goeasy has served over a million Canadian customers and has issued $ 5 billion in loans to date.
goeasy is one of the main stocks to invest in right now. The company has forecast the Canadian non-senior consumer loan market to grow to $ 196 billion, giving it ample opportunity to drive revenue growth at a meteoric pace in 2021 and beyond. -of the. It has now reported 78 consecutive quarters of positive earnings per share. In fact, over the past 20 years goeasy has grown its income at an annual rate of 25%.
goeasy continues to benefit from high operating leverage. In the fourth quarter of 2020, its revenue increased 4.6% year-over-year to $ 173 million. By comparison, its operating profit rose 31.8% and its profits climbed an impressive 54.5% year-over-year in the December quarter.
Rating and more
GSY stock is valued at a market capitalization of $ 1.9 billion. Analysts expect the company to increase sales 14.4% to $ 747 million in 2021 and 13.5% to $ 847 million in 2022. By comparison, earnings growth is expected at 19. % in 2021 and 15.3% in 2022.
We can see the stock’s futures price / sell multiple of 2.24 and a price / earnings multiple of 14.2, which is really cheap, despite its above-market returns over the past two decades. The company is now a dividend aristocrat, which means it has increased its dividends for five consecutive years.
It pays a dividend of $ 2.64 per share, indicating a forward yield of 2.1%. Its payout ratio is below 40%, which leaves enough room for Goeasy to increase dividends in the future. Analysts who follow GSY stock have a 12-month average price target of $ 147, which is 15% above its current price.
goeasy’s robust growth metrics, attractive valuation and expanding addressable market make it a leading stock to buy at present.
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