Topic: How To Invest

Stock Pickers Digest Hotline – Friday, March 22, 2019

Article Excerpt

ALIMENTATION COUCHE-TARD INC., $72.71, symbol ATD.B on Toronto, operates 12,642 convenience stores across North America and Europe. In the three months ended February 3, 2019, sales rose 4.6%, to $16.52 billion from $15.79 billion a year earlier (all figures except share price in U.S. dollars). Earnings jumped 102.3%, to a record $609.0 million, or $1.08 a share, from $301.0 million, or $0.53. The jump was mostly due to the successful integration of the company’s acquisitions, including the purchase of convenience-store chain CST Brands (symbol CST on New York) for $4.4 billion. Growth by acquisition adds risk, especially with a string of deals as big as CST. 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. Couche-Tard…

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