-
Cargojet Inc. Common and Variable Voting Shares (CJT $81.91)
-
Canadian Tire Corporation Limited (CTC $246.00)
Q: I'd be interested to hear your take these days on Cargojet and CTC. Both seems to be on a roll, and I wonder if this is "good" momentum?
5i Research Answer:
We have very recent comments on CJT. Both momentum and sentiment are improving as longer-term contracts get renewed.
On CTC, investors are largely ignoring any tariff issues, with the stock up 28% this year. Valuation is OK at 19X earnings, with a 2.8% dividend (last raised in November). Estimates have been ticking marginally higher in the last month. Q1 earnings beat estimates by 63% but sales were a 1% 'miss'. Momentum is certainly solid and we would consider the stock decent enough today. But we might not expect the same type of returns going forward.