Q: TIHor DOO which do you prefer today for growth over the short term.
Thank you as always for this great service.
David
Thank you as always for this great service.
David
5i Research Answer:
A challenging macro environment may be a near-term headwind for both as bookings growth turns negative for TIH and a possible consumer spending slowdown on discretionary items impacts DOO. Having said that, we still quite like both names, and we think both are well-managed companies in their industries. TIH is a high-quality industrial, that is almost trading at a premium to the market, while DOO has a track record of growing organically and a strong buyback program. We are comfortable holding both over the long term. However, if we HAVE TO choose, we may side with DOO for now, as the valuation is much more attractive, currently trading at 7.3x Forward P/E with the company continually buying back and cancelling its shares.