Out of all TSX-listed companies, Cargojet Inc. (TSX:CJT) has been among the best performers in recent months, during this post-pandemic rally we’ve experienced. There are many reasons for this rally. In this article, I’m going to highlight one of the key drivers I see for Cargojet in the near term. This driver could actually propel this rally to continue for some time to come, for this specific company.
Cargojet is the number one player in air freight in the Canadian market. The company is the core supplier of Amazon Inc. (NASDAQ:AMZN) and provides the e-commerce giant’s overnight shipping needs.
While Cargojet has cornered the market in Canada, and the company has an effective monopoly on this niche sector, other competitors do exist. That said, with the international border restrictions in place due to Covid, other Canadian airlines have been sidelined and are unable to provide freight aboard commercial flights. This has provided a boon for Cargojet’s freight business.
This has led to a window of opportunity for Cargojet in dominating this space and taking as much volume as possible. E-commerce volumes continue to rise and they’re projected to rise over the long term.
This provides a nice, long-term landscape for the company’s growth. But this near-term catalyst has taken shares of Cargojet to near all-time highs at a time when so many stocks are depressed. For this reason, I suggest Canadian investors keep Cargojet on their watch list and nibble on any dips moving forward.
Invest wisely, my friends.
