Ctc.a is down about $26 dollars in the last month or so. Is a price under $160 a good entry point ?
Will appreciate your comments on this stock going forward. Buy, sell or hold ?
CTC has taken a hit, but is still up 6% this year. It is cheap at 12X earnings, with an attractive dividend. EPS did miss estimates by 9%. But sales beat by 2%. More difficult comparisons after strong back-to-school and holiday seasons last year may weigh on Canadian Tire's consolidated revenue from continued operations performance in 2H. Momentum on the top line continues, with CTR displaying growth across all categories (discretionary, seasonal, essential and non-seasonal) in 2Q. Triangle Rewards (its loyalty program) and patriotic purchasing remain drivers, with the former having a penetration of 54.8% and growing active members by 6% in 2Q. An unfavorable product mix and foreign exchange pressures (that may not repeat in 2H) weigh on profitability, with adjusted Ebitda margin narrowing 140 bps in the quarter. Investments in the "True North" strategy exacerbated profitability pressures that may linger for the rest of the year. We think the company is doing a reasonable job in a tough environment. The consumer is under some pressure, and this may limit short-term pressure. We would see it as a HOLD today.