Cargojet: Despite The Massive Rally, It Is Trading At Fair Value

Cargojet Inc. (OTC:CGJTF) (CJT:TSX) is an overnight air cargo service provider based in Canada that operates domestically and internationally. It is Canada's top cargo airline by representing over 90% of the domestic overnight air cargo lift available in Canada and being the only national overnight air cargo consolidator. Here’s what makes it a good stock.

​Catalysts for growth:
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Cargojet is poised to continue seeing exceptional growth in the years ahead due to its dominant position and the industries' high barriers to entry. Despite its aggressive investments in CAPEX and the explosive run up in share price, the company is well priced. Furthermore, e-commerce tailwinds will act as an additional catalyst as users continue to expect faster shipping times.

Given that the company is spending heavily on growth capital expenditures, this will allow them to capture a large portion of future demand in this growing industry as they won't have to worry too much about competition. In fact, during Q2, they actually turned down a lot of international business. In their most recent conference call, CEO Ajay Virmani stated that if they had 20 more planes, almost double what they currently have, they could have flown those.

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