Thoughts on TIH?

Hi there,

Toromont is one of the best industrial stocks in the country. While the company is a little expensive here, it's not THAT expensive. The company is trading at about a 10% premium to its historical averages. Given that the company is expected to growth earnings and revenue inline with its historical averages (mid-teens), then one does question if the company deserves said premium.

That doesn't mean Toromont won't deliver positive returns. Assuming the company returns to trade inline with historical valuations, it can still result in positive growth assuming it meets or exceeds expectations. It also doesn't guarantee a dip. All it has to do is trade sideways or rise slightly for a quarter or two for valuations to come down. Just don't expect it to match growth of 55% of this past year. Also worth noting Toromont is a Canadian Dividend Aristocrat with the third longest dividend growth streak in the country.

Overall, it is a solid company and i'd have no problems taken a position in Toromont.

Mat