Q: Dear 5i
I`m reading that some analysts see CLS as a stock that won`t do any better than what the market in general is suppose to return , and as such is not worth the investment maybe when compared to other stocks . What would you say ? Also EQB or GSY and why ?
Thanks
Bill C
I`m reading that some analysts see CLS as a stock that won`t do any better than what the market in general is suppose to return , and as such is not worth the investment maybe when compared to other stocks . What would you say ? Also EQB or GSY and why ?
Thanks
Bill C
5i Research Answer:
CLS is up 217% in a year, so the analysts might be behind the curve on this. Despite its gains, it is only 14X earnings, is growing fast and generates strong cash flow. The comments may be based on its historical long term performance (which is less robust), but the company seems to be putting things together much better now, and is benefitting from the rise in AI spending. GSY and EQB we think are superior companies within their sector. Each has executed very well and both are very cheap. Both have excellent dividend growth records. We like them a lot.