Badger Daylighting (TSX:BAD) has been a beast for shareholders in 2019. Shares have climbed 53% this year as of close on June 24.
Badger has achieved these returns on the back of fantastic earnings releases and an improved outlook, bolstered in large part by its performance south of the border.
In its first quarter report Badger projected a hydrovac build between 190 and 220 units for the full year. The improved economic performance in the United States has created a fantastic environment for Badger’s growth.
The U.S. economy was expected to post slower growth in 2019, but it has exceeded expectations in the first half of the year. These macro conditions should support good results for Badger going forward.
To add to its appeal, Badger even offers income to shareholders. The stock pays out a monthly dividend of $0.0475 per share which represents a modest 1.1% yield.
Investors looking to add Badger at current prices should exercise patience this summer. The stock had a P/E of 27 as of this writing, and shares are hovering around all-time highs as we head into July. Shares had an RSI of 62 as of close on June 24, which puts Badger just outside of technically overbought levels.
I am bullish on Badger in the long term, but savvy investors should commit to monitoring the stock in order to take advantage of a more favourable entry point. As it stands today, Badger is simply too pricey to add.
