Q: TMX Group has been consistently producing great results, for several quarters, coupled with dividend increases. But, its share price does not seem to be able to rise past $57-$58 level, even with most analysts revising their estimates and price targets, higher.
Is this price action consistent with its historical pattern, or we are missing something ?
Do you continue to like to own the stock for Income and Growth, over next several years ?
Thank You
Is this price action consistent with its historical pattern, or we are missing something ?
Do you continue to like to own the stock for Income and Growth, over next several years ?
Thank You
5i Research Answer:
X has reported consistently solid results along with healthy dividend growth rates over time. The company’s share price is consistently grinding to new highs with minimal volatility. We think X is doing great; It is trading at a 27x Forward P/E, the highest levels in years. Though we think X could do just fine over time, investors need to temper expectations and have more patience for the name. We think X would fit a Balanced Portfolio over the next several years due to a solid combination of a decent dividend yield and solid fundamental growth.