Stock Deep Dive: Genevieve's Fave

Welcome to another GRIT Stock Deep dive! This time, it was written by GRIT CEO Genevieve Roch-Decter and is one of her all-time favorites.

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Let’s get into it!

Descartes Systems (DSG-T, DSGX, US$8B Market Cap, US$93/share)

This stock has stood out in my portfolio for years and is a consistent feature in our GRIT premium newsletters. Today, I want to shine a spotlight on it once more. The company has had several recent positive developments, and I'm confident it and its stock have an auspicious future ahead.

What's Descartes all about? 

They specialize in delivering value-added IT solutions tailored to logistics and transportation. Rather than upfront licensing fees, they operate on a pay-for-use model. With a global reach spanning over 160 countries, they serve a staggering 26,000 customers.

By tracking over a billion shipments annually in real-time and processing over 24 billion transactions annually, Descartes plays a pivotal role in connecting carriers, shippers, governments, and intermediaries. Their mission? Ensuring seamless and compliant movement of shipments from point A to point B.

Their customers are industry-leading companies you would recognize:

DSG is a cornerstone of my portfolio for several compelling reasons:

1. ✅ Stock Outperformance: It consistently outperforms both long and short-term.

2. ✅ Long-Term Financial Strength: Its financials demonstrate stability and growth potential over the long haul.

3. ✅ Recent Quarter Performance (Q4/2024): Margins have rebounded to historical averages, indicating operational efficiency.

4. ✅ Accelerating M&A Activity: The pace of mergers and acquisitions is picking up, suggesting a proactive approach to growth.

5. ✅ Attractive Valuation: The current valuation presents an appealing investment opportunity.

Let’s break them down:

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