I am still holding these in my TFSA after significant drop in value. Do you recommend holding or exiting these names? Thanks.
Shyam
While both are down, the stories are quite different with each company. TIXT’s growth slowed down significantly to a negative range if we exclude acquisitions. Investors are concerned with growth prospects as the company market itself as operating in the AI space but not experiencing industry growth. TIXT’s valuation is attractive but it is not a need to own stock at all. We would prefer more growth potential in a TFSA.
GSY’s fundamentals remain strong, although a slowdown in consumer spending and high interest rates could be short-term headwinds. But the company continues to show good execution, and the last quarter was a record. GSY is trading at 7.1x earnings, which we think is quite attractive, and we see it as a BUY and would be comfortable with it in a growth-oriented account.