Hey there,
Seems I have been answering a question on CTS every other week. Here were my latest replies on the company:
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HI there,
We've answered quite a few questions on the company here on the Q&A. It is a company we like and operates in a similar space to CGI Group. The company is not listed on the NASDAQ but is listed on the NYSE in the states. Here is a quick view i gave on it just a couple of days ago :
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As for CTS, it is knocking on the door to being overbought, with an RSI of 68. We like the company, its a mini-CGI and has been growing at a rapid clip. It isn't cheap and trading well above historical and industry averages. That being said, if it can maintain this pace of growth and not slip up, the company should be just fine here. Trading at a forward P/E of 22 for a company expected to grow in the high teens on an annual basis is pretty reasonable in these markets. I just wouldn't expect the same type of share price appreciation given the company's run up in price over the pat year and a half.
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It briefly hit overbought territory but just dropped out of that level with yesterday's ~3%. We'll see where it goes from here, but nothing has changed in terms of my thoughts valuation. A good company, trading at reasonable valuations. I should add, this one is likely to be pretty volatile. Generally, the company has been able to top estimates, but when it doesn't the company usually suffers from a sell off. That is the major risk with this company - if it doesn't keep up with lofty expectations or if growth slows, the markets are likely to turn negative on it pretty quickly. The flip side is also true, as the markets can turn bullish quickly if they turn it around or continue to perform well.
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Since my last reply, the stock is down by about 2% and there hasn't been any notable news of note. With that in mind, nothing has really changed in terms of my opinion on the stock as outlined above. Good company, reasonable valuations.
Mat