Many investors look for ways to play the e-commerce revolution, instead of buying shares directly in e-commerce companies like Amazon.com, Inc. (NASDAQ:AMZN). One Canadian company I've touted for quite some time as an excellent way to play growth in this sector is Cargojet Inc. (TSX:CJT). This company has a near-monopoly on e-commerce air shipments, a key category for retailers like Amazon to get packages to consumer same day, or next day.
Cargojet has exclusive contracts which make the company uniquely valuable in this space, and has dominated the Canadian market for quite some time. Investors have driven up the company's share price accordingly, with shares more than quadrupling over the past five years, making Cargojet one of the best growth investments on the TSX for this time period.
The current valuation multiples have indeed gotten stretched, meaning some value investors may steer clear, but for young investors with long investing time horizons, picking up shares in a company like Cargojet to buy and hold for a decade or two may turn out to be a great investment, should the shipping landscape remain in a similar state over time.
Cargojet is still a relatively small cap company, and some volatility can be expected for investors, so buying on dips and holding for a long time horizon is likely the only way to profit on this trade long term. The company's small dividend of just under 1% can compensate somewhat for investors who are willing to wait, and are holding with the hopes of continued dividend increases over time.
Invest wisely, my friends.
