Stockchase Opinions

Bill ProctorCanadian Tire Corporation LtdCTC.TOBUYFeb 08, 2001

With int. rate cuts, should improve sales. New pres. Some uncertainty on earnings
$21.40

Stock price when the opinion was issued

$210.00

As of Jun 05, 2026. Market Open.

specialty stores
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HOLD

Historically a great Canadian retail business. However, business not performing as well due to eCommerce etc. Unsure on future of business. Better names for retail companies like Aritzia. 

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Curated by Allan Tong since 2019.
99+ opinions with 4.15 rating.

TOP PICK

Another iconic national brand, Canadian Tire is the dark horse on this list. It's no secret that retail has struggled this year as higher wages, costlier shipping and theft (aka “shrinkage”) have battered the sector. Canadian Tire has sunk 30% off its 52-week highs and recently made a new low of $131.46. At the same time, the stock's PE has fallen below 10x compared to its five-year median of 11.5x.

PARTIAL BUY

Retail does well in November and maybe into December. He wants the stock to show some strength though. If so, CTC should do well.

DON'T BUY

It is reflecting the lower demand of the Canadian consumer and has pretty much penetrated the Canadian market.

BUY ON WEAKNESS

Long period of low dividend yield. Current share price a good price to buy at. Likes automotive aspect of business. Improving business prospects. 

DON'T BUY

Online shopping taking major toll on business.
Not as many visitors in the past.
Business not competing well with Amazon.
Rewards program not very good.
Not a good time to invest in business. 

BUY ON WEAKNESS

Great Canadian company.
Very cheap valuation on the stock price.
~4% dividend yield is strong. 
Beat guidance last quarter.
Economic headwinds could weigh on the company.

BUY ON WEAKNESS

Latest corporate earnings surprisingly good.
Very strong brand across Canada.
Well managed company. 
Current valuation is trading at a fair price.
Will continue to watch outlook for business. 

COMMENT
It had basically been moving sideways but the downtrend is continuing so it is less appealing.
BUY ON WEAKNESS
Great brick and mortar company with history of success. Recent recession worries have been tough on company. 8x P/E multiple a good valuation to buy at. Excellent management team and balance sheet.
SELL
It is an amazing stock. Historically it has peaked 3 times at 2 1/2 X Book and then falls. It is back up to its peak again so time to sell.
Unspecified
It is well run but is competing against online shopping. It gives exposure to only the Canadian shopper and you should consider multinational companies with consumers better off than Canadian consumers who carry a lot of debt, the most in the world.
BUY ON WEAKNESS
Company is a success story in the Canadian retail industry. Well managed company. As discretionary spending decreases, will be a risk. Costs of inventory will also be a risk (rising inflation). Secure dividend and strong financials. Would wait to buy on weakness.
HOLD
Allan Tong’s Discover Picks Canadian Tire boasts a wide range of household goods at decent prices, but consumers will have much more choice in buying that patio set or baseball glove. True, last summer’s partial reopenings didn’t dent the stock price, but the Tire’s website still sucks. Price to cash flow is inline with its peers at 6.5x, though CTC stock’s PE of 13.4x is slightly higher than the industry’s 12.8x. Its profit margin of 5.8% is just below the industry’s 6%. Overall, not bad. Read Battle of the Stocks: 2021 Consumer Staples Stocks for our full analysis.
WAIT
It has been a big beneficiary of the pandemic as they were one of the few that were able to still operate. At-home and camping leisure benefitted them. It's good for long term growth but he would not put new money in today.