CANADIAN TIRE CORP. $65 (Toronto symbol CTC.A; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 81.4 million; Market cap: $5.3 billion; Price-to-sales ratio: 0.5; Dividend yield: 1.8%; TSINetwork Rating: Above Average; www.canadiantire.ca) faces strong competition from U.S.-based department store operator Target, which plans to open around 135 stores in Canada in 2013.
The company’s experience competing with big U.S. retailers, like Wal-Mart and Home Depot, will help it prepare for Target. As well, Canadian Tire has recently added to its automotive products and services. That will give it an edge over Target, which will focus more on clothing and household goods.
Canadian Tire is a buy.