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  5. DRX: DRX continues to fall. [ADF Group Inc. Subordinate Voting Shares]
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Investment Q&A

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Q: DRX continues to fall. I have been keeping it as a 3 year plus hold because of its value and possible growth due to its innovative technology. Your thoughts.

Also, are there any Canadian stocks that you were favorable on that you think investors should consider selling now that tariffs appear to be happening? Thanks Steve
Asked by Stephen on February 05, 2025
5i Research Answer:

We took DRX out of our growth portfolio due to negative momentum and economic concerns. But it is very cheap and a hold argument can certainly be made here. The balance sheet is fine and it still generates good cash flow. It has been hit recently with tariff concerns and it is buying back stock. The last quarter was mixed, with a profit beat but revenue fell. Analysts expect slightly lower EPS this year but it is still highly profitable. With sentiment in the dumps, it would not take much positive news to move the stock higher. On tariffs, we are trying not to react. The issue of course is in flux and many stocks have already been impacted. The industrial sector and autos may be the most vulnerable. But not many we follow would be sells just because of the tariff issue.