Goeasy (TSX:GSY) stock fell 0.48% on April 23. Shares have climbed, though, by 28.4% in 2019 so far. The stock is up 25% from the prior year.
Goeasy is set to release its first-quarter results for 2019 on May 8. The stock is still trading well off its all-time highs that set in the fall of 2018, but shares have performed very well so far this year. Is Goeasy too pricey to pick up ahead of earnings?
The company had an impressive 2018 as total revenue grew to $506 million compared to $401 million in the prior year. It reported record quarterly earnings in the fourth quarter of $1.02 per share.
Goeasy also achieved record loan originations of $265 million which were up 50% from the prior year. Canadian consumers are under intense pressure since the Bank of Canada commenced its rate tightening path.
Goeasy will continue to see success in this environment as more consumers look to alternatives over the course of this credit crunch.
The company also announced an 38% increase to its annual dividend to $1.24 per share. This represents a 2.1% yield, which is a solid boon considering the stock’s growth trajectory.
Goeasy last had an RSI of 59 as of close on April 23. This puts it close to overbought territory in late April. I love Goeasy as a long-term hold, but value investors may opt to stay on the sidelines in a broadly overpriced market.
