Bullboard - Stock Discussion Forum Canadian Tire Ord Shs CDNAF

Primary Symbol: T.CTC Alternate Symbol(s): T.CTC.A | CDNTF

Canadian Tire Corporation, Limited is a Canada-based retail goods and services provider. It operates through three segments: Retail, Financial Services, and CT REIT. The Retail segment is conducted under a number of banners, including Canadian Tire, Canadian Tire Gas+ (Petroleum), Mark’s, PartSource, Helly Hansen, Party City in Canada, and various SportChek banners. The Financial Services... see more

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TSX:CTC - Post Discussion

Canadian Tire Ord Shs > Robert Gill -BNN - contrarian Buy

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Post by Possibleidiot01 on Apr 25, 2024 3:05pm

Robert Gill -BNN - contrarian Buy

TOP PICK

A contrarian idea, which is how you make outsized returns. Has assembled a nice portfolio of brands over time. Nice job steering customers away from online competition by focusing on bulkier items. Price down due to recession fears. A reversion-to-the-mean play, aiming for 60% return back to all-time high of $215, plus impressive dividend. Yield is 5.2%.

Consumer pullback in spending during a recession is not a risk unique to CTC.A. All retailers face this. Very good profitability, strong balance sheet, trades at 12x earnings.

(Analysts’ price target is $150.33)

specialty stores

$135.270

Owned

Canadian Tire (CTC.A TSX)

The company is a retailer of tools, automotive, seasonal items, appliances and clothing. It is a competitor to Home Depot; Home Hardware; dollar stores and Walmart. Shares are down from all-time highs of $215 to $134 now on the back of recessionary concerns and a shift out of higher-yielding equities and into fixed income. If shares simply rebound to $215, that is a 60 per cent return without the dividend. The valuation is attractive and the yield is impressive.

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