Canadian Tire (TSX:CTC.A) stock has been feeling the uneasy breeze of tariffs for many months now. And while the company has a plan to pivot and adapt amid Trump’s tariff disruptions, the stock hasn’t been as hot as it could have been, especially given the potential longer-lived “buy Canadian” tailwind that could cause many consumers to be a bit more patriotic with the retailers they choose to do business with.
Sure, only time will tell how much of a boost a very Canadian retailer like Canadian Tire will get at the hands of tariff-induced shifts in consumer spending. Regardless, I wouldn’t sleep on the well-run Canadian icon now that its stock is starting to pick up some real traction.
Canadian Tire stock’s poised to make up for lost time
Indeed, Canadian Tire shares have been sleepy for many years now. But with the name recently blasting off to hit a new 52-week high just north of the $170 per-share mark, something does seem different this time around as Canadian Tire looks to power ahead and gain share in a somewhat more challenging market environment.
While Canadian Tire has plans to dodge most of the tariff-related blow from the Trump administration, I’d argue that the major reason to own the stock is not because of its agility to overcome a sluggish consumer environment but the company’s long-term efforts, which could pay ample dividends for years to come.
Indeed, Canadian Tire isn’t just a place to buy home improvement products or auto parts anymore. The latest acquisition of the Hudson’s Bay Company (HBC) intellectual property, I believe, shows us that Canadian Tire has become more of an everyday retailer for Canadians to get a wide assortment of goods and domestic brands. Whether we’re talking about toys, sporting goods, pet food, garden goods, snacks, or party supplies, Canadian Tire’s past-decade evolution has been quite remarkable.
Another reason for Canadians to shop at the iconic retailer
And with HBC’s brands added to an already robust brand roster, I think consumers will have yet another reason to head over to the local Canadian Tire. With a strong presence across the nation and a fast-growing book of exclusive brands, I consider CTC.A stock to be a year-to-date gainer (up over 12% so far in 2025), poised to keep winning, even if the Canadian consumer falls under increased pressure in the second half.
In the second half, management is bracing for more uncertainty. Indeed, tariffs and a Canadian recession still can’t be ruled out. In any case, I think the company’s recent quarterly strength (robust revenue growth) should not be ignored, especially with a rather cautious guide ahead.
Whenever you have a relatively low bar on expectations, a muted valuation, and improving fundamentals (solid brands and an agile management team), you could have the formula for a stock destined for new highs.
Can the good times continue in the second half?
As to whether CTC.A shares can sustain recent melt-up rally gains remains the big question. Discretionary sales could take a breather after delivering decent growth in the first quarter. In any case, I’d look for Canadian Tire to expand upon HBC’s assets while also keeping an ear open for new acquisition targets. In short, Canadian Tire is shaping up to be one of the most intriguing names in Canadian retail.
Either way, Canadian investors have more than enough incentive to buckle up and ride out any looming waves. The 4.1% dividend yield is attractive — as too is its modest 11.2 times trailing price-to-earnings multiple.
