
TSE:CTC.A
This summary was created by AI, based on 7 opinions in the last 12 months.
The Canadian Tire Corporation Ltd. (CTC.A) is viewed as a solid but unexciting investment by several experts. While the company has shown notable growth, particularly with a recent 38% year-over-year increase in earnings per share, concerns about consumer spending and overall economic health persist, particularly given its discretionary nature. Analysts suggest that although CTC.A is undergoing a transformation showing positive results, it might be at its peak price target range, making it a good time to consider profit-taking. There is a cautious outlook on the stock due to its reliance on consumer sentiment, with comparisons drawn to competitors like DOL, which show more defensive characteristics in their profiles. It remains well-covered in the market, and while the dividend yield is solid, some analysts caution against initiating new positions in discretionary stocks like Canadian Tire amidst economic uncertainties.
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.