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  5. ATZ: Hi Team, I am having a hard time deciding which of these 3 names to add new funds to today. [Aritzia Inc. Subordinate Voting Shares]
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Investment Q&A

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Q: Hi Team,
I am having a hard time deciding which of these 3 names to add new funds to today. ATZ, ATS, and CROX. Of these 3 which would be your best bet if aiming for top potential returns over the course of the next say 3-5yrs? Could you please rank in order of buying preference here along with any comments on the potential of each name you wish to add? Thanks

Shane.

Asked by Shane on March 24, 2023
5i Research Answer:

Historically, CROX has grown its share price at the fastest rate out of the three names listed, and it has also expanded sales and earnings faster than ATS or ATZ. From a valuation standpoint, CROX trades at 10.5X forward P/E, vs. ATS and ATZ at 22.3X and 19.5X, respectively. On a forward price to sales basis, all three names trade at the same valuation. CROX has the highest volatility, followed by ATZ and then ATS, which when considering 'upwards' volatility, is a positive indicator, in that the price can move higher than the other two names. Given CROX's historical performance, its strong fundamentals, and recent momentum, we would consider CROX to have the highest potential, followed by ATZ, and lastly ATS. 

Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in CROX.