Bearish slumps and even long-term bear market phases are not uncommon among robust growth stocks. It’s sometimes difficult for such stocks to recover because once investors who generally prefer long-term investments lose confidence, they don’t come back without a solid reason. However, Boyd Group Services (TSX:BYD) might be an exception.
The company
Boyd Group is a giant in the non-franchised collision repair centres market. It has a massive footprint in North America through five businesses under its banner. The Gerber Collision & Glass U.S. division is by far the largest of its companies and has 850 locations in the country. The Canadian footprint is minimal by comparison, with about 128 locations under two brands. About 90% of the company’s revenue is from the U.S.
Another interesting thing about its business model is that the bulk of its dealing is with insurance companies, not consumers. This gives it a bit of an edge…
