
TSE:CTC.A
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.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. They have survived competition and recessions. They are well positioned. Stock price remains cheap at 11x earnings. The dividend has grown nicely. Balance sheet looks okay with the last quarter showing 30% better than expected on EPS. Unlock Premium - Try 5i Free
When Walmart arrived in Canada, he felt that CTC was untouchable. It's the go-to place for smaller Canadian communities. Their stores remained open during the lockdown. CTC is trading around $165 and is a solid hold. As the economy reopens, people will spend elsewhere, though. You can buy this on a $10-20 pullback. Aritzia is a better bet though.
It's one of the best survivors in retail. They held their own against Walmart. Great job diversifying into Sportscheck and Marks Work Warehouse. They have the goods that people want, so have benefitted from the pandemic. But the stock has recovered a lot. Trades at a 10x earning basis, so cheap. That said, there are better retailers, like ATD'B. CTC.A is well-diversified, though.