It’s rare to have an investor who’s focused on stock picking with the ultimate goal of hanging onto it for life, or even a long period of time. In the age of low (and sometimes no) commission trading platforms and trading, it can be hard to hang onto a stock for more than a few months at a time.
And, of course, once those quarterly earnings results do come out, it can be tempting to make a move in response. If it’s a good quarter met with a bad post-earnings reaction, it can be tempting to hit that sell button, even if it means losing a bit of money. And what if it was a disastrous quarter met with a huge plunge?
Sometimes, hanging onto shares or buying more can feel a tad reckless, even though it might be the best move to a market overreaction. Finally, and perhaps the most frustrating scenario of all, a company can have a spectacular quarter and still trend lower anyway. Undoubtedly, these days, with valuations gravitating towards the higher end, a good quarter does not necessarily mean a rally will follow. In fact, the higher the price of admission, the more it takes to move that needle higher.
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Couche-Tard: A great staple to own for the long run
Either way, here’s a name that I think new investors can comfortably hold for extended periods of time. While a “forever” holding period might not be realistic, I think a multi-decade horizon is just as good, especially when it comes to a proven grower like Alimentation Couche-Tard (TSX:ATD). Of late, the stock has been rather underwhelming, and the path ahead certainly feels quite untimely, especially with a relative lack of merger and acquisition (M&A) moves in the past year. Did the convenience retailer spend just a bit too much time on that 7 & i Holdings pursuit that ultimately went nowhere?
Sure, but it’s better to spend effort and walk away than not put in enough due diligence and be left overpaying for an asset that might not be all too worth the while in the long run. At the end of the day, synergies are what matter, not the pace of deals or the excitement factor of such deals.
Get ready for more deals?
In any case, I think 2026 could be a big year for deals with interest rates moving lower and broad M&A activity looking to march higher. Indeed, this kind of climate could bode well for Couche-Tard, especially if it can find opportunities within the mid-cap scene. Of course, valuations aren’t exactly on the low end these days. But that doesn’t mean synergies can’t be uncovered in the corners of the market where there is pressure.
And when you consider how the convenience store scene might change over the next 10-20 years, I think it makes sense to acquire a rival, not only for the turnaround potential, but perhaps for the addition of expertise to assist in the expansion into new growth categories (think food and grocery supply chains). Investors might not welcome a restaurant or grocery acquisition, but I think it could unlock considerable long-term value as the convenience retail market shifts more towards food and less towards fuel.
Also, it’s not just deals that can help Couche-Tard make the most of industry opportunities. Strategic deals and collabs can also move the needle. All considered, Couche-Tard stock is a wonderful stock to stash away for years or even decades. I think all the makings of a 2026 breakout are on the table for ATD, and that has me tempted to add to my position further.
