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Manulife Financial Corporation (MFC)
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Canadian Tire Corporation Limited Class A Non-Voting Shares (CTC.A)
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Magna International Inc. (MG)
Q: Happy New Year
Could you rank in order which of the three has the most growth potential going forward and why.
Thanks
Jeff
Could you rank in order which of the three has the most growth potential going forward and why.
Thanks
Jeff
5i Research Answer:
In terms of growth, we would rank MG as having the highest growth potential in the coming years, with MFC second, and CTC.A third. Magna has more leverage and flexibility to grow its top and bottom lines faster than both MFC and CTC.A, and part of this is due to the higher growth rates from the industry it operates in. MFC has been performing well recently and its growth rates are expected to be decent going forward, but it is primarily an income stock. CTC.A has some pricing power, but sales growth is expected to be moderate in the coming years, and it has historically averaged a roughly 5% sales CAGR over the past five years.