Q: I am looking at swapping out CNR for TRI. as I believe TRI may be less sensitive to the economy. What is the long term (5-10 yr) growth outlook for these 2 companies and do you prefer one company over the other. Thanks
5i Research Answer:
Any forecast beyond a couple of years is little more than a guess. We have forecasts to 2028 but would not rely much on them. CNR EPS is expected to rise 40% (cumulative) in that period. TRI 56%. We would fully agree TRI is likely to be less cyclical, but this reflected in valuations. We like both, but are partial to TRI for its history and stability, and believe it would be better as a sleep-at-night stock over the time period discussed.