Topic: How To Invest

The Successful Investor Hotline – Friday, March 11, 2022

Article Excerpt

CANADIAN TIRE CORP., $177.73, Toronto symbol CTC.A, is a buy. Investors tap the company’s 504 Canadian Tire stores. They sell automotive parts and services, and household and sporting goods; franchisees run most of the locations. Still, the company’s other operations also enrich its outlook. They include 160 stores operating under the PartSource (auto parts) and Party City (party supplies) banners. Canadian Tire has several other major retail chains: Mark’s sells casual and work clothing through 380 stores; and the Sport Chek Group sells sporting goods and athletic wear through 375 outlets, including Sport Chek and Sports Experts. This week, the company announced several new investments in its stores, online businesses and private label brands. In all, it will spend $3.4 billion on these initiatives over the next four years. To put that amount in context, the company’s market cap (the total value of all outstanding shares) is $11.2 billion. Under this new plan, Canadian Tire will launch over 12,000 new private-label products by 2025…