Alimentation Couche-Tard (TSX:ATD) is a stock known by many seasoned investors as a growth stock worthy of consideration. But as the uncertainty of 2025 unfolds, should investors buy, sell, or hold Couche-Tard this year?
Let’s look at a case to answer the question of whether investors should buy, sell, or hold this growth stock in 2025.
The case for buying
There are several reasons why investors looking to buy Couche-Tard will be pleased right now. First, the increasing strength of the U.S. dollar will lead to additional gains given the company’s strong revenue from that market.
Adding to that appeal is the fact that Couche-Tard has a massive presence in the U.S. market. In fact, Couche-Tard’s over 7,100 stores in the U.S. market is more than three times the number of locations the company has at home in Canada.
Outside of its geographic appeal, Couche-Tard boasts another key reason for investors to consider.
Specifically, Couche-Tard has developed a knack for acquiring and integrating increasingly larger acquisition targets. By scooping up smaller players over the years, Couche-Tard has become an expert in realizing synergies.
The company is also increasingly known for taking the best parts of individual acquisitions and integrating them into its growing business network.
One final unique point is Couche-Tard’s ability to expand into complementary verticals, which are a natural fit for the convenience store and gas station operator. Specific examples of this include adding car washes and EV charging networks to its expansive network.
The case for selling
Despite Couche-Tard being a stellar growth darling, the recent performance of the stock may suggest otherwise.
Yes, the stock has surged nearly 70% in the past five years. But the last five years have been remarkable at times for most of the market. Looking at a more recent timeframe shows that the stock is down nearly 7% over the trailing 12-month period. That dip extends to 8% over the past six-month period.
By way of comparison, over that same 12-month and 6-month period, the market as a whole reported growth of 21% and 11%, respectively.
Existing investors could see that as a signal to take some profits and look elsewhere. This is particularly true for investors with shorter timelines given the added volatility clouding the market in 2025.
The case for holding
Existing investors of Couche-Tard are left with pondering that third option to buy, sell, or hold Couche-Tard in 2025. And it may be holding the growth-focused stock that appeals most to those investors.
Couche-Tard is known for its acquisitions. The company is also known for cranking out strong results. Finally, the stock is well-known for its defensive prowess, which could make it a key holding to offset market volatility.
In short, existing investors who have longer timelines may want to consider holding Couche-Tard for the moment.
Buy, sell or hold. What should you do?
No stock, even the most defensive pick is without some risk. That’s particularly true when we look at 2025 and the increasing uncertainty that it holds for investors.
Fortunately, Couche-Tard offers both strong growth and significant defensive appeal to offset much of that risk. That’s why, in my opinion, Couche-Tard remains a solid option to buy or hold for investors with long-term investment timelines.
Buy it, hold it and watch it grow.