Q: Hello, I read with your interest your answer to Kolbi's question yesterday about growth stocks for TFSA. Regarding STN, it has an amazing chart and momentum. I see that WSP is in its peer group and is in 5i's BE portfolio. Would STN be preferred over WSP? Please provide reasons for yes or no. Many thanks.
5i Research Answer:
Historically we have preferred WSP for more global exposure and focus on certain sectors (such as ESG). But STN has improved a lot in the past few years and momemtum is excellent. Valuation is similar, and we are largely indifferent, as of today. WSP we think should perform better than it has (still up 18% in the past year). Note STN is in our growth portfolio so we do like both. Both have nice large backlogs providing some visibility to revenue.