Couche-Tard Stock: A Sneaky, Quiet Winner With More Room to Grow

Here’s why Alimentation Couche-Tard (TSX:ATD) remains a top TSX stock long-term investors may want to consider for sneaky growth.

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For investors looking to capitalize on the recent moves in the market, finding the best companies that have recently dipped is a good place to start. On the TSX, one of my top picks remains Alimentation Couche-Tard (TSX:ATD). This operator of gas stations and convenience stores headquartered in Canada remains one of the best growth stocks in the market, seeing an incredible 430% rise in its stock price over the past 10 years. 

Here’s more on why I think Couche-Tard remains a sneaky way to play the current uptrend in the market.

Strong fundamentals support long-term growth thesis

Couche-Tard’s stock price has dipped more than 12% from its recent all-time high. While that’s certainly significant, many may view this discount as one that’s not worth buying.

The thing is, Couche-Tard’s business model is about as defensive as can be. Folks need to commute to work and fill up their tanks. Grabbing something on the way may be viewed as an affordable luxury for many and is something many may not cut down on.

Serving more than a million customers per day, Couche-Tard has been able to provide excellent value to shareholders over the years via its growth-via-acquisition business model. In consolidating a fragmented gas station/convenience store segment, the company has grown into a global behemoth with tens of thousands of stores around the globe.

The company’s moat is driven by its size, scale and the quality of its brands. That’s not going away anytime soon.

Strong forward outlook

Couche-Tard has indicated more growth is on the horizon. With the company’s upcoming earnings set to be released, investors are eagerly anticipating whether the company will be able to meet or beat its benchmarks. I think that’s likely, given the company’s previous performance.

Couche-Tard continues to report strong top- and bottom-line growth. And notably, this growth is a mix of organic (same-store sales) growth, boosted by additional footprint each and every quarter. As the company continues to grow around the world, investors gain exposure to one of the most diversified options in this sector.

Can this stock continue to outperform?

Couche-Tard’s historical performance is great. But it’s the company’s outlook that I like. As the company builds out its 500 new locations (as per its 2028 growth plan), investors stand to benefit from continued revenue and earnings growth. And given the impressive return on equity Couche-Tard has historically provided, the larger the company gets in terms of store count, the better it should perform across all metrics.

That’s a winning recipe, and it’s the reason this is a top stock I think is worth buying here.

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.

Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alimentation Couche-Tard. The Motley Fool has a disclosure policy.

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