Q: Linamar's sales and earnings have increased and beat estimates yet the stock price continues to slide, closing Friday at $65.88. Is there something going on with the company or is it a sector issue?
5i Research Answer:
Its share price has been choppy, but the overall trend since 2022 has been up. The name has largely been following the broader market, TSX, and today it is up fairly nicely. It trades at a cheap valuation of 6.3X forward earnings, and its fundamentals have been improving. We feel that the name can continue to see some volatility, but overall it has been moving in the right direction. We think it is at a pretty good value today if earnings continue to improve.