
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.
After 30 years in the business he notices that CTC has been the most consistently retailer--but too expensive. He's a value player. CTC has survived the Amazon onslaught, but it has slumped this past year given the Amazon effect. CTC has a great balance sheet and fine inventory control. They have the heart of Canadians. They will continue to do well, but the retail sector is tough now.
Easy to short a stock that's already been beaten up. Nothing in the numbers says they're having trouble. Last quarter wasn't great. Retail is tough. Looks cheap, buying back stock, trying for 10% EPS growth this year. He doesn't like retail against Amazon, which he owns. Could be a trade.
It's looking a bit expensive. However, they have fantastic urban locations. The real estate itself is worth a lot. They haven't done anything different recently and Amazon is a big competitor. In danger of some market erosion. Right now it's around 15x multiple. Maybe should be around 10 times, so it could go down 30% from where they are right now.
There are better growth names out there as they are limited to the Canadian consumer market only. They have an advantage on larger garden items over Amazon for savings in shipping, but it is not enough to entice her.