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Loblaw Companies Limited (L $58.58)
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CGI Inc. Class A Subordinate Voting Shares (GIB.A $122.72)
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Nutrien Ltd. (NTR $81.03)
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Tantalus Systems Holding Inc. (GRID $4.08)
- what is the best metric for determining whether or not Tantalus Systems is good value at current levels ?
- I was surprised by the AI disruption note in your commentary for CGI. I thought they were to benefit from AI. Maybe I misunderstood (?)
- By trimming NTR and adding L in the balanced portfolio, are you suggesting there is more upside with L ?
GRID is not yet profitable and as a result, it does not have a P/E valuation, but it trades at roughly 2X forward sales. It is nearing profitability, and analysts expect it to turn a profit by FY2026, and with accelerating sales growth. Following its recent pullback, we think this represents an attractive area for a company that is expanding its margins and growing at a decent rate.
GIB.A can benefit from AI, and it is heavily investing in AI, but some consultant roles can be replaced by AI, and overall we think there are more interesting names in the market right now for the growth model portfolio.
We think there is certainly long-term upside with L. It has had a nice run (up 18% year-to-date), but analyst estimate trends are rising, and we think that its premium valuation is reflecting an improving quality of business.