Undervalued? Which consumer cyclical defensive stocks are undervalued?
We feel that in this order, BRP Inc. (DOO), Restaurant Brands (QSR), Leons (LNF), and Dollarama (DOL) are the most undervalued of the consumer cyclicals.
QSR has lots of headwinds although if management is able to execute and increase revenues, then the current valuation is quite low. BRP has performed extremely well over the past year and is projecting further growth and growing its profit margins nicely. Leons and Dollarama have benefitted over the past year and profits have also grown nicely for them both.
So said the team at 5iResearch.