CCL Industries was singled out as a stock to start buying in stages rather than waiting for a major market pullback, with the S&P/TSX Composite still hovering near record levels.
The case for a partial position is that the next dip may be only 3% to 5%, leaving sidelined investors to miss further gains in earnings, dividends and share prices.
CCL's latest results support that approach: second-quarter sales rose 9.1% to $2.1 billion, including 5% organic growth, while adjusted EPS climbed 10.7% to a record $1.35.
At about $97.14, the shares trade near a 52-week high and roughly 20.8 times trailing earnings, but low leverage of 1.1 times EBITDA and $325.3 million in buybacks and dividends help justify an initial stake.