$75 Stock in 2021 with more Institutional Interest to follow Dye & Durham (TSX:DND) is another top stock that could handily outperform the broader markets in 2021 and beyond and deliver strong returns. It has jumped over five times from its IPO price of $7, and I expect the rally in its stock to sustain, thanks to its large and growing blue-chip customer base and appetite for accretive acquisitions.
The company has over 25,000 active clients with a meagre customer churn rate of 2%. Meanwhile, the average tenure of its top 100 client accounts is about 16.6 years.
Dye & Durham completed seven acquisitions over the past two years that have expanded its geographical reach and accelerated its growth. For instance, its revenues have more than doubled over the past two years, thanks to the continued demand for its products and accretive acquisitions. Meanwhile, its adjusted EBITDA has also grown at a breakneck pace.
Recently, Dye & Durham announced the acquisition of SAI Global Property to expand into the Australian market. Dye & Durham expects to generate substantial cash flows through SAI Global’s workflow software and drive EBITDA growth.
With its strong active customer base, sustained demand for its products and services, subscription service offering, and accretive acquisition, Dye & Durham remains well positioned to deliver outsized growth.