Q: Should I be seeking TFII with headwinds on the horizon?
https://www.freightwaves.com/news/trucking-bloodbath-snares-fleets-large-and-small
https://www.freightwaves.com/news/trucking-bloodbath-snares-fleets-large-and-small
5i Research Answer:
TFII does have economic sensitivity and alluded to such in its recent quarter. That being said, it has managed other cycles very well, typically using lower valuations to make smart acquisitions. Also, with the recesssion on everyone's mind, valuation of the stock at least partially reflects the situation. In other words, we remain comfortable with the stock, though we might temper expectations for gains over the next two quarters.