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1 Growth Stock Down 25% to Buy Right Now

A plant grows from coins.
Source: Getty Images

Written by Nicholas Dobroruka at The Motley Fool Canada

The Canadian stock market may have come roaring back last year, but there are still plenty of deals to be found on the TSX. The tech sector, in particular, is loaded with companies that are still trading below all-time highs from late 2021.

Buying growth stocks right now

As long as you’ve got the right time horizon and are willing to be patient, now’s not the time to be on the sidelines. Sure, volatility may seem as if it’s extremely high today. That being said, we’re also seeing a large amount of stocks trading at must-buy prices.

It’s not only high-flying tech stocks offering up value right now. So, if you’re like me, someone who’s already over-indexed in the tech sector, there are opportunities out there.

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With that in mind, I’ve reviewed a growth stock that might not be on sale for much longer.

Don’t miss your chance to load up on goeasy (TSX:GSY) while it’s still trading at a rare discount.

goeasy

From all-time highs that were set in late 2021, goeasy went on to steadily drop by more than 50% by mid-2022.

It wasn’t the first time the growth stock had been on a decline like that, and it likely won’t be the last. Unfortunately, that kind of volatility is a reality of owning a growth stock with market-beating potential. It’s worth mentioning that a 50% pullback is not something that has happened often to goeasy during its time on the TSX.

Since the stock’s lows of 2022, shares are up just shy of 70%. That puts the growth stock up a market-crushing 250% over the past five years. In comparison, the S&P/TSX Composite Index is barely up 30%, excluding dividends.

With shares currently down 25% from all-time highs, there’s still value to be had. But even if goeasy was trading at all-time highs, this is still a stock you could feel good about buying today.

goeasy deserves a spot on all growth investors’ watch lists. There’s no need to wait for a pullback to be loading up on this top company.

Investing in a high-interest-rate environment

One of the reasons why goeasy was hit with a pullback list is due to the high-interest-rate environment. As a consumer-facing financial services provider, it wasn’t surprising to see demand dry up as interest rates increased.

Part of the reason that makes goeasy such an intriguing buy today is that interest rates seem to have peaked. Of course, it’s anybody’s guess as to when we’ll see the first interest rate cut. But at this point, seeing another increase seems very unlikely.

While interest rates remain as high as they are, now could be an incredibly opportunistic time to be buying shares of goeasy. By the time we see interest rates being cut, you may have already missed out on lots of growth.

Foolish bottom line

You might have to go searching for them, but there are growth stocks outside of the tech sector with impressive market-beating track records that also happen to be on sale.

goeasy is on the rise and doesn’t look like it’s slowing down anytime soon. This is not a discount that you want to miss out on.

The post 1 Growth Stock Down 25% to Buy Right Now appeared first on The Motley Fool Canada.

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Fool contributor Nicholas Dobroruka has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

2024