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Inv Reporter says buy Bird Construction

2019-10-11 20:22 ET - In the News

The Investment Reporter, in its Oct. 4, 2019, issue, says buy Bird Construction Ltd., recently $5.87. This is the first time the Reporter has said to buy Bird Construction. The company is a general contractor in Canada. The Reporter notes that Bird's shares have dropped recently. Despite that, the company's shares still trade at a high price-to-earnings ratio (P/E) of 29.4 times. The company has debt-free earnings that continue to rise, though, and it is not hard for the Reporter to justify the price given Bird's strong earnings. In 2019, Bird is expected to earn 20 cents a share, which would be a nice turnaround from last year's loss of a penny a share. Still, as mentioned above, the stock is trading at 29.4 times the 20 cents that Bird is expected to earn this year. Next year, though, Bird's earnings are expected to more than triple to 61 cents a share. Based on that estimate, the company's shares trade at a suddenly appealing forward P/E of 9.6 times. Bird also pays an annual dividend of 39 cents a share, which has a yield equal to 6.64 per cent. The Reporter says buy Bird Construction for long-term share price gains and attractive dividends.

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