TSE:DSG

Descartes (DSG.TO)

100.43
+4.19 (4.35%)
as of Jul 27, 2026, 8:00:00 pm Market Open.
175 watching
0
Investor Insights
star iconJul 27, 2026, 12:00 am

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

Descartes (DSG-T) has faced significant challenges recently, primarily due to fears surrounding AI disruptions within the software industry. However, several experts maintain a positive outlook, emphasizing the company's strong foundational performance and its unique logistically integrated network built over two decades, which creates a deep moat against competition. Despite the decline in stock performance, experts believe the current valuation presents a buying opportunity for long-term growth. The market challenges, such as the tariff wars and competition from AI, have contributed to a perceived undervaluation; nonetheless, many analysts assert that Descartes remains an essential player in logistics and supply chain management with potential benefits from AI innovations. The stock continues to show resilience and growth prospects, even amidst the market turmoil.

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Consensus
Positive
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Valuation
Undervalued
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GTY,GTY
BUY
Logistics software. A very solid company. Very excited about where the company is going. As a lot more room to run, over the next several years.
WATCH
Just above half in his database. Most recent 4 quarters of earnings was 4%. OK, but nothing to write home about. Coming quarter is expected to rise to 6%. P/E of 16 X’s. Earnings forecast of $.26. Announced new contracts in China. Watching closely, especially software for US/Canada Customs.
BUY
Chart shows it has clearly broken out of a long-term base pattern. Lost a little momentum recently, but it's not a big problem. The technical risk would be if it broke below its breakout point. If it has a pullback and volume increases, this is not a good sign.
COMMENT
Ranks 260, about half way in his database. Earnings are expected to grow from $.22 to $.28 giving it about a 16 P/E. reasonably priced. Likes their recurring revenue. On his watch list for a potential by over the next 3 months.
WATCH
An interesting company with good potential. Has had a bit of a pop recently. If it had a pullback, he would look at it.
WATCH
Very small and very illiquid. New CEO has done a great job of trimming away a lot of expenses and focusing on the core business. Provides a fairly unique network service. By layering on new applications, they are starting to move up the value chain. Legislation is going their way now that customs requires clearance before going through. Could show some nice traction going forward.
BUY
Looks like they have turned the corner. Have changed their business model. Not selling software up front. They are really operating as an operating model. Likes the change.
WEAK BUY
Basically, supply chain software. There has been some management changes which has made the company more stable. Maybe worth a speculation.
TOP PICK
New management and has gone through a big turnaround. 90% of earnings are recurring revenues. If you like Systems Xcellence (SXC-T), you should be interested in this. Made 2 accretive acquisitions. In 2007, trucks arriving in Canada must post cargo 24 hours prior. They supply the product.
DON'T BUY
Formed three peaks from January to June and indicates momentum is fading. Doesn't like the chart.
BUY
Have made positive results for the last 4 or 5 quarters. Earnings are expected to grow from $0.04 to $0.18 against a 23 PE. Acquired a company within the last month that specialises in transportation software for border crossings.
BUY ON WEAKNESS
Descartes Systems did a recent financing for an acquisition. He does not own this stock because of concerns of the market place. The stock ranks in the top 15% of the data base. Very interesting technology. Good opportunities , sound business model. He likes it and would buy on a pull back.
BUY
Ranks 94 out of 700 stocks in his database portfolio. The latest earnings report was up 130% year over year. Earnings of $.09 are expected to rise to $.16 in Jan/07. Good P/E. has a good business model.
BUY
Borderline top 10 holding in his database. Recently reported earnings were pretty good. Earnings are expected to grow from $0.08 in Jan/06 to $0.17 in Jan/07, almost a double against a 19 P/E. Offers very good return on investment.
DON'T BUY
Earnings are expected to be a loss of $0.10 for the Jan/06 year end. Most recent report, sales were down 27% and earnings down 13%.
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