in my view, Alimentation Couche-Tard (TSX: ATD.B) is the cheapest Growth stock To TSX Today, it offers investors a lot of protection right now. It’s the perfect stock for investors who “may miss” market growth, but they also want to protect their portfolio from potential market crashes.
Business model offers incredible growth potential
The company has done a great job of refurbishing existing locations to increase its presence in stores and make acquisitions. Couche-Tard leverages its brand and expertise to optimize square feet in each location and increase sales. This is a winning strategy.
In addition, Couche-Tard was able to significantly increase acquisitions both on the top and bottom lines. Couche-Tard is a master at improving the margins of the targets you earn. These trends are very important when analyzing this sector from a growth perspective.
Asian growth is very bullish for long-term investors
With over 12,500 locations in North America, the Couche-Tard is often considered a domestic play. That said, the company recently made an acquisition in Asia to strengthen its global footprint. The company has bid on many businesses in Asia, but has been very patient in finding the right deal. This prudent takeover strategy is what I think makes Couche-Tard very successful in the long run.
Couche-Tard’s role as an integrator in the convenience store and gas station divisions should be key to the company’s growth theory. The company has grown tremendously through a series of timely acquisitions.
Size, scale, and low beta fundamentals make this a defensive stock
Couche-Tard is one of the largest operators in its business. This company and Seven-Eleven make up about 15% of the total market. The fact that more integrations may be imminent is bullish for Couche-Tard investors. This is because higher market power and synergies create lasting shareholder value.
In addition, Couche-Tard’s low beta indicator means that the stock has proven to be a defensive winner in the past for investors. This unfortunately means that Couche-Tard may not be able to attend market rallies as much as any other growth drama. That said, the company has traditionally had less downsides when it comes to market routs. These are the core defensive attributes that investors should consider.
We are still in the very early stages of a growth story that has a lot of room to carry out. When it comes to acquisitions, the sky seems to be the limit of Couche-Tard. All reasonably priced acquisitions carried out add increased cash flow and margins to the already impressive balance sheet. This company has positive means and motivation. This is a time when many of the company’s competitors are not.
Looking at the types of V-shaped recovery being discussed, Couche-Tard could be one of the growing stocks to get out of this turmoil.
Speaking of the best stocks out there for defensive investors …
Ian Butler, a well-known Canadian investor, has nominated 10 shares for Canadians to buy today. So if you’re tired of reading about getting rich in the stock market, today may be a good day for you.
The Motley Fool Canada offers 65% off the list price of the best stock selection service, plus a full money-back guarantee on the amount you pay for the service. Click here for instructions on how to take advantage of this.
Stupid contributor Chris Macdonald There are no positions in any of the listed stocks. Motley Fool recommends ALIMENTATION COUCHE-TARD INC.
Beat the 2021 crash with cheap growth and defense: buy this one!
https://www.fool.ca/2021/01/09/beat-a-2021-market-crash-with-cheap-growth-and-defensiveness-buy-this-1-stock/ Beat the 2021 crash with cheap growth and defense: buy this one!