Topic: How To Invest

Stock Pickers Digest Hotline – Friday, January 18, 2019

Article Excerpt

ALIMENTATION COUCHE-TARD INC., $71.63, symbol ATD.B on Toronto, operates 12,661 convenience stores across North America and Europe. In the three months ended October 14, 2018, sales rose 21.1%, to $14.70 billion from $12.14 billion a year earlier (all figures except share price in U.S. dollars). The jump was mostly due to acquisitions, including the purchase of convenience-store chain CST Brands (symbol CST on New York) for $4.4 billion. Revenue in the latest quarter beat the consensus estimate of $13.9 billion. Growth by acquisition adds risk, especially with a string of deals as big as CST—its market cap is $4.4 billion. However, Couche-Tard has a long track record of successfully integrating those businesses. The company’s outlook remains positive, and earnings should keep rising as it further integrates its acquisitions. Couche-Tard also plans to continue to launch fresh food initiatives and promotions to boost sales. The stock trades at 16.2 times the forecast 2019 earnings of $3.33 U.S. a share. OUR RECOMMENDATION: Alimentation Couche-Tard is a..