Headlines continue to be filled by supply-chain disruptions, inflation, interest rates, and the fall of tech stocks. These areas are important. But nothing much has changed over the last few months. And they’re causing many Motley Fool investors to miss out on potentially huge stock opportunities.
What opportunities?
Analysts weighed in recently on one tech stock that Motley Fool investors seem to have overlooked. Calian Group (TSX:CGY) is a business services and solutions company, providing these services to the health, defence, security, aerospace, engineering, AgTech, and information tech industries. Its services expand throughout Canada and the United States as well as Europe.
Calian stock acts like a problem solver, creating agreements, partnerships and acquisitions to make major revenue from some of the world’s biggest names. It can do everything from creating computer and nuclear systems to training services for Canada’s military.
How is it overlooked?
Calian stock recently reported $518 million in revenue for 2021. This was huge for analysts who now believe the company is well on the path towards $1 billion in revenue by 2024. To get there, analysts expect the company to speed up its pace of acquisitions.
Over the past four years under the leadership of Chief Executive Officer Kevin Ford, Calian stock has doubled revenue and cash flow while maintaining an average return on invested capital of 15%.
But the biggest catalyst is the pandemic. With restrictions easing, there are more opportunities for expansion. This is especially true as geopolitical tensions rise, creating a resurgence in military training and cybersecurity aid.
A value stock for even more growth
Calian stock has a 40-year track record of profitability. It’s created value while managing risk. And yet it’s in the tech sector, so Motley Fool investors all but ignore the stock’s growth potential.
Shares of Calian stock trade at about $69 as of writing. Analysts give it a consensus target price $81 as of writing. That’s a potential upside of 17% as of writing. And the proof it can get there is right there. Shares are up 15% in the last year and 156% in the last five years. Yet, since coming on the market, Calian stock rose 891% as of writing! That’s a compound annual growth rate (CAGR) of 9.64% during that time.
Furthermore, given its growth path over the last few decades, the company is one of the few tech stocks to offer a dividend yield. Right now, you can pick up Calian stock with a 1.64% dividend yield, or $1.12 per share per year.
Foolish takeaway
Analysts continue to remain positive about the future of Calian stock. They’re confident in the future path towards $1 billion, marking the company as an outperforming within its industry.
So, even if it takes until 2024 to get there, Calian stock has the momentum behind it that proves the company knows what it’s doing. The transformation into a focused acquisition machine continues to work for the company. And as the world opens up, there will be even more opportunities for this company to expand.
