Already a hot stock over the past few years, Cargojet (Cargojet News, Stock Quote, Chart TSX:CJT) has broken out to new highs this month, which could be a signal of even better days ahead, says technical analyst and portfolio manager Keith Richards of ValueTrend Wealth Management.
Drake and Kawhi Leonard aren’t the only things going on with Mississauga-based cargo airline Cargojet, which has been a rocket of a stock in recent years, effectively tripling in value since mid-2016. CJT pushed past $90.00 per share earlier this month and hit a high of $95.24 this Tuesday.
“It definitely has a great trend,” said Richards to BNN Bloomberg on Tuesday. “There was a bit of a lid at around $90.00 and it looks like it has broken out. I think this is a good-looking chart.”
“Markets could pull back over the next week or two and if they do, probably look at any small pullback on this stock as a buying opportunity. It looks good,” he says.
The largest air transport company in Canada, Cargojet is taking advantage of growth in the e-commerce space to boost its top and bottom lines. Ahead of the company’s second quarter fiscal 2019 results due at the end of the month, Cargojet’s last quarterly financials featured revenue growth of 11 per cent to $110.4 million and adjusted EBITDA growth of 17.5 per cent to $32.3 million. Both numbers were in line with analysts’ estimates.