TSE:CTC.A

Canadian Tire Corporation Ltd. (A) (CTC.A.TO)

197.97
+1.66 (0.85%)
as of Jul 3, 2026, 8:00:00 pm Market Open.
342 watching
0
Investor Insights
star iconJul 4, 2026, 12:00 am

This summary was created by AI, based on 9 opinions in the last 12 months.

Canadian Tire Corporation Ltd. (CTC.A) has received mixed reviews from various experts, reflecting a range of opinions about its current performance and future potential. Many acknowledge its solid business fundamentals, noting a recent earnings report that demonstrates significant year-over-year growth, with EPS up by 38%. However, concerns about the broader economic environment and consumer sentiment, particularly regarding discretionary spending, have led to warnings about the stock's volatility. While some experts appreciate its turnaround efforts and fair valuation at approximately 15x normalized earnings, others prefer more defensive names in the sector, highlighting the risks inherent in the consumer market. Overall, the consensus leans toward caution, with suggestions to potentially take profits while remaining optimistic about the company's long-term efficacy.

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Consensus
Cautious
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Valuation
Fair Value
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DON'T BUY

Steer clear. Generally, retail is a tough industry. Not good insulation from online competition. Wary of retail that's not specialty. Would prefer HD, ORLY, or dollar store segment, but wait for pullback.

Tends to be a more economically sensitive retailer. Could benefit from rate cuts and an uptick in discretionary spending. But rate cuts would intensify competition. Good portion of profitability comes from its financial services (credit card) business. 

DON'T BUY

He's not big on retail right now. If you're in a good market, you can look at the RSI line for a stock to see how its relative strength is doing compared to the rest of the market. Steadily declining RSI, and the sector's had trouble.

WAIT

It needs to clear out some of its inventory - major purchases by shoppers are being deferred. It is on his radar and he is watching for a bottom.

PAST TOP PICK
(A Top Pick Feb 01/23, Down 12%)

Still likes it. To make money, you have to buy things that other people don't want to buy. Good job focusing on items that can't be distributed through the mail, thereby fending off online retailers. Rate cuts will help the story. Impressive dividend yield of 5%.

DON'T BUY

If worried about Canadian consumer and effects of inflation, not a place you want to be. Incredibly cheap valuation. Bought back a lot of stock last year, but it's cheaper this year. Not a fan of retail, except for COST. Warren Buffett doesn't like retail either.

COMMENT

Retail stocks will tick up if we avoid a recession, inflation continues to fall, and if interest rates decline. CTC has done great acquisitions. Well-run.

TOP PICK

They've done well competing with online retailers like Amazon by focusing on cars, gardening furniture and sports equipment. Shares are down 40% from its 2021 peak, so it's a good opportunity now. Solid balance sheet and pays a good dividend yield.

(Analysts’ price target is $180.70)
WAIT

Getting more attractive. Impressive general margins last quarter. Reasonable at under 9x, nice dividend that grows well. Earnings picture clouded by softening demand, higher oil prices, higher rates. Better stocks at this time.

DON'T BUY

Historically this has gone from strength to strength. People will always buy skates, fix their cars or paint their homes. But discretionary spending always flags in a recession or downturn.

DON'T BUY

Has a financial services division, so delinquencies could tick up in this economic environment. Not a strong unit growth grower. Well penetrated in Canada. Traffic could soften, stock's pulled back. Not interested.

WATCH

Pulled back on earnings and consumer sentiment. Time to look at it, and he is. Hasn't stepped in yet as he completes his research. Meets his quality criteria. Phenomenal franchise in Canada. Nothing wrong with the business, it's just economically sensitive. Well run, fantastic financial shape.

DON'T BUY

Avoid. Consumer discretionary. Not a lot of great growth opportunity here. Consolidation around $140-160. The Consumer Index is slowing down and will affect stocks like this.

BUY
CTC.A vs. ATD

He missed CTC.A on macro concerns. Great business, one-stop shop, attractive loyalty program. Good company, not expensive, so you can own it for a while.

ATD has done pretty well, but he'd prefer CTC.A for the next year or so.

WEAK BUY

A very difficult quarter because of a fire and eliminating contracts. Missed numbers. They anticipate slower consumer growth. Could buy here, but will take some time to return to normalized earnings numbers. Good yield of 4.1%.

PAST TOP PICK
(A Top Pick Feb 01/23, Up 8%)

Really likes how it tries to move away from competing with online retailers. A lot of items are larger or seasonal. Shares down from all-time high of $215. Still more to go, you could still buy here. Well managed, nice dividend. A reversion to the mean with a dividend story, not a growth story.

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