
TSE:CTC.A
This summary was created by AI, based on 6 opinions in the last 12 months.
Experts generally have a cautious outlook on Canadian Tire Corporation (CTC.A), highlighting its recent earnings improvement with a 38% year-over-year EPS growth and a transformation that is showing positive results. However, concerns over consumer spending and economic conditions in Canada linger, particularly as 60% of CTC.A's sales are discretionary. While its valuation at approximately 15x normalized earnings seems fair and has attracted analysts' price targets that range from $150 to $200, the company is still seen as facing challenges such as competition from e-commerce and discount retailers. Some analysts prefer stocks with more defensive profiles, suggesting a more conservative investment approach given the uncertain economic landscape. Overall, while CTC.A has solid fundamentals and a good yield, experts recommend a cautious stance or considering profit-taking at current levels.
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.