Amy Legate-Wolfe: Onex Corporation
After climbing to an all-time high in 2017, Onex Corporation (TSX: ONEX) has dipped a few times in the last few years. Almost a year ago, the stock hovered around the $100 mark, but since then dropped almost 30% to where it trades at the time of writing at about $77 per share.
But there have been two pieces of great news that sent shares trending upwards again. On May 10, the company’s quarterly results saw net earnings rise $195 million, and reported $1.6 billion of cash. Then the stock jumped 8.3% after announcing it would be buying WestJet Airlines for $3.5 billion. The news caused WestJet (and Air Canada) stocks to jump as well. This was huge for Onex, a company that only a few years back had tried to buy Air Canada. Now, billionaire CEO Gerry Schwartz finally has his hands on a Canadian airline!
This is only the beginning for the firm, as it invests in a number of solid industries that make it a diverse investment in itself.
Analysts believe the stock is quite undervalued, predicting the stock to rise significantly 30% in the next year to $100 per share. And honestly, this is a great long-term hold as the stock has steadily grown since its IPO in 1987.
Fool contributor Amy Legate-Wolfe owns shares of Air Canada.
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