This Undervalued Stock Could Rise Significantly Higher in 2021

Alimentation Couche-Tard Inc. (TSX:ATD.B) is a global leader in the future of electric vehicle charging solutions.

| More on:
grow dividends

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

Alimentation Couche-Tard (TSX:ATD.B) operates and licenses convenience stores. Across the network, the company is preparing for the future by innovating its payment and delivery options. In response to the pandemic and changing shopping behaviours, Couche-Tard expanded and gained valuable insights into what the company’s customers want in terms of convenience, including curbside pickup and home delivery options. The company is evaluating these models for further understanding and deployment.

Frictionless payments

Recently, the company has also made notable advancements in frictionless payments inside Couche-Tard’s stores and on forecourts. In January, the company opened its first frictionless store, Couche-Tard Connecté, which is a unique retail laboratory in partnership with McGill University in Montreal. The results were quite impressive in terms of how the company delivers a fully frictionless experience in a timely manner and with great accuracy.

Further, Couche-Tard’s store team members have been outstanding ambassadors, playing a key role in the success of the location. In the next few months, Couche-Tard plans to inaugurate the company’s first few stores in Arizona using technology from a leading provider of autonomous checkout technology — another milestone in Couche-Tard’s innovation journey.

Electrification of the company’s network

Despite the hardships the world faced from the COVID-19 pandemic, Couche-Tard’s customers continue to rely on the company’s network for timely energy needs, as routines progressively return to normal. As a company, Couche-Tard acted proactively to strengthen the fuel side of the company’s business, while at the same time looking to the future by investing in the electrification of the company’s network.

In fiscal 2021, the company has continued to press forward on Couche-Tard’s initiative to rebrand the company’s forecourts to Circle K, converting 450 sites and adding another 71 fully branded new-to-industry locations, bringing the total to nearly 2,800 Circle K fuel branded sites in North America. In fiscal 2022, Couche-Tard plans to accelerate the pace, as it builds further brand awareness in the minds of consumers.

Loyalty program

As the company scales this rebranding work, Couche-Tard is also pushing forward the company’s value proposition by developing a loyalty program that will be both attractive and easy for the company’s customers and enable the company’s North American network to leverage a greater amount of data, as it already does in Europe.

One of the biggest developments in Couche-Tard’s fuel business this year has been the strides it has made in Couche-Tard’s supply chain, as it formed partnerships to take advantage of procurement synergies and to become increasingly active in fuel-trading opportunities. The company also opened a logistics tower in Riga, Latvia, where all Couche-Tard’s global fuel logistics are monitored at all times, as the company aims to drive efficiencies in Couche-Tard’s supply chain.

Electric vehicle (EV) charging solutions

Furthermore, the company has accrued some valuable benefits and experiences from its Norway Lab, solidifying its position as a global leader in the future of EV charging solutions. In Norway, at Couche-Tard’s stations, the company now has nearly 500 charging points and has gained significant insight into the charging and shopping behaviours of the company’s EV customers. This sets up Couche-Tard well for the future.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

The Motley Fool owns shares of and recommends ALIMENTATION COUCHE-TARD INC. Fool contributor Nikhil Kumar has no position in any of the stocks mentioned. 

More on Investing

A small flower grows out of a concrete crack.

3 Top Stocks You Can Still Buy for Under $20 a Share

Canopy Growth stock (TSX:WEED)(NASDAQ:CGC) and these two others are incredible investments to consider as we continue to move out of…

Read more »

Automated vehicles
Tech Stocks

Want to Be a Millionaire? This 1 Canadian Stock Could Soon See a Blistering Rally

If you can take the risk of buying falling shares of some companies with a solid growth outlook, they could…

Read more »

Oil pipes in an oil field
Energy Stocks

3 Top Stocks for Commodity Exposure

Top stocks like Teck Resources have been hit lately, but most commodity markets remain strong and ready for the next…

Read more »

Happy couple being attended by office worker at office
Dividend Stocks

BCE Stock: A Great Pick to Boost Your RRSP Retirement Fund

BCE (TSX:BCE)(NYSE:BCE) stock is a dirt-cheap telecom stock with a huge dividend yield to keep RRSP investors happy.

Read more »

Money growing in soil , Business success concept.
Dividend Stocks

Want Easy Passive Income? These 2 Canadian Dividend Aristocrats Deliver

Passive income stars like Slate Grocery REIT (TSX:SGR.U) should be on your watch list.

Read more »

stock data
Stocks for Beginners

Are You Starting a Stock Portfolio? If Yes, Keep It Safe and Simple

First-time investors should keep their stock portfolios safe and simple by holding time-tested, income-producing assets.

Read more »

Simple life style relaxation with Asian working business woman healthy lifestyle take it easy resting in comfort hotel or home living room having free time with peace of mind and self health balance
Stocks for Beginners

New Investors: Follow the KISS Model With These 3 TSX Stocks

These TSX stocks keep it super simple for new investors. You'll need each of these services over the next decade…

Read more »

stock research, analyze data
Dividend Stocks

RRSP Investors: 1 Cheap TSX Dividend Stock to Buy Now and Own for 35 Years

RRSP investors can still find top TSX dividend stocks to buy at discounted prices.

Read more »