Toromont’s outlook is still bright

Article Excerpt

TOROMONT INDUSTRIES LTD. $106 is a buy. The company (Toronto symbol TIH; Aggressive Growth Portfolio; Manufacturing sector; Shares outstanding: 82.8 million; Market cap: $8.8 billion; Price-to-sales ratio: 2.3; Dividend yield: 1.3%; TSINetwork Rating: Extra Risk; www.toromont.com) distributes a broad range of industrial equipment (such as bulldozers, backhoe loaders and drills), including Caterpillar machinery, in eastern Canada and the Eastern Seaboard of the U.S. Toromont also makes refrigeration systems through its CIMCO business. The stock hit a new all-time high of $111 in May 2021. Even though it has since moved down slightly, it remains up a very impressive 86% since we promoted it from Stock Pickers Digest (now Power Growth Investing). It’s our newsletter focused on aggressive investing. Toromont’s outlook remains bright. Demand for its heavy equipment continues to improve as COVID-19 lockdowns ease. New government spending on infrastructure should also spur its earnings. The stock now trades at an acceptable 26.9 times the company’s projected 2021 earnings of $3.94 a share. The $1.40 dividend yields 1.3%. Toromont is still…