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  5. TFII: Why does XPO have such out performance over TFII, is TFII undervalued? [TFI International Inc.]
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Q: Why does XPO have such out performance over TFII, is TFII undervalued?
Thanks Again
Asked by eugene on February 08, 2024
5i Research Answer:

XPO recently reported earnings and several analysts increased their price targets as a result of its strong results. TFII is up today as well, however, it reports after hours. Both are similar in size, however, TFII has seen better sales and earnings growth over the past five years, as well as a stronger margin profile. TFII is less volatile and trades at a cheaper valuation than XPO, but it is also expecting weaker sales and earnings growth next year, as opposed to XPO which is expecting strong growth. TFII has faced some challenges over the past year, but overall, we continue to like the name and feel that it is trading at a relatively cheap valuation. We would like to see TFII break its losing streak of earnings results after hours today, however.