Thoughts on DSG as a growth stock

0
0

Any thoughts on Descartes Systems Group? How could vaccine logistics help/hinder this stock?

Marked as spam
Asked on December 7, 2020 9:44 am
6 views
0
Private answer

Hi Mat, I hope all is well. Would this be a good entry point for Descartes? Thanks so much!

Marked as spam
Posted by Vanessa Grass
Answered on December 7, 2020 11:46 am
0
Private answer

Hi Felix,

Descartes has been a stellar growth stock for years. Over the past five years, its share price has gained 175% and it is in positive territory once gain this year (+31%). Since the company is a logisicts and supply chain management company, the demand for, and the importance of its products where quite evident during the pandemic. Economic lockdowns has been a nightmare for companies as they try and navigate a very complicated global supply chain.

The pandemic however, only likely accelerated adoption of their products. The need will remains whether there is a vaccine or not. In terms of actual supply chain logistics for the vaccine - I am unclear if they will benefit directly. They could benefit in two segments: Manufacturing & distribution and Transportation & Logistics. Notably, they've highlighted their capacity in the Pharmaceutical Cold Chain Logistics recently.

I do not see any of the major vaccine players listed as customers, but that is not to say they don't use other companies that DSG deals with directly . Furthermore, I have yet to see any announcements in terms of government support in this area. Once again, not to say they won't be involved but nothing explicitly stated anywhere.

Mat

Marked as spam
Posted by Mathieu Litalien
Answered on December 7, 2020 11:33 am