In view of Goeasy’s recent volatility, is an update in the offing?

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Asked on December 5, 2021 9:20 am
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Hi there,

Since goeasy's volatity is directly tied to the macro volatility we are experience and not in any way related to the company's perfromance, there really is nothing to worry about. Plenty of high growth stocks are becoming increasingly volatile as we look to close out 2021. Keep in mind GSY is still up by 81% this year and it has a phenomenal run. So taking a breather here isn't necessarily a bad thing.

The company remains attractively priced and is trading at only 14.44 times forward earnings with a PEG below 1 - a sign that its share price is not keeping up with expected growth rates. Will the company hit expected growth targets? I see no reason why it won't as it met on guidance in every year since 2011 - the company just has an exceptional track record.

Remember, volatility is being driven by macro events and in this case has nothing to do with GSY fundamentals. So nothing has really changed with GSY's investment thesis. It remains an excellent growth company that is well positioned to continue delivering double-digit dividend growth.

Mat
(of note I own GSY and haven't sold, nor do I plan to)

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Posted by Mathieu Litalien
Answered on December 6, 2021 4:45 am