-
ATS Corporation (ATS)
-
Comfort Systems USA Inc. (FIX)
-
Heico Corporation (HEI)
-
Jacobs Solutions Inc. (J)
Q: Hello 5i researchers,
I have been holding ATS for a while and bought it around $55 in a registered account. Yesterday reading your answer to one of our member's questions, you mentioned about "we like ATS' business but it has had some fundamental issues over the last year..." could you please elaborate it a bit more for me to understand what kind of fundamental issues? any other better name or names in the sector to replace ATS that has some fundamental issues? Thanks
I have been holding ATS for a while and bought it around $55 in a registered account. Yesterday reading your answer to one of our member's questions, you mentioned about "we like ATS' business but it has had some fundamental issues over the last year..." could you please elaborate it a bit more for me to understand what kind of fundamental issues? any other better name or names in the sector to replace ATS that has some fundamental issues? Thanks
5i Research Answer:
Recent quarterly results highlighted a decline in revenue but high bookings signalling that orders were being pushed into the latter end of the year. Previously, ATS had seen strong revenue growth but the market did not like that its backlog and bookings were declining. We highlighted these backlog trends in the recent report update we published. We still like it but we would ike to see some consistency in future quarters. Other replacement options could be FIX, J, and HEI.