This retail icon continues to grow

Article Excerpt

Canadian Tire’s shares have jumped 24% in the past year, mainly thanks to its successful takeover of the Forzani chain of sporting goods stores. It has also made deals that have helped unlock the hidden value of its credit card business and real estate holdings. We feel the stock still has plenty of room to rise, for a number of reasons. For one, Canadian Tire’s new growth plan should help it compete with online sellers and attract younger shoppers. It also stands to gain from Target’s decision to close all 133 of its Canadian locations. CANADIAN TIRE CORP. $118 (Toronto symbol CTC.A; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 78.1 million; Market cap: $9.2 billion; Price-to-sales ratio: 0.7; Dividend yield: 1.8%; TSINetwork Rating: Above Average; www.canadiantire.ca) began operating in 1922 and is now one of Canada’s leading retailers. The company owns 493 Canadian Tire stores, which sell automotive, household and sporting goods. Franchisees run most of these outlets. Other operations…