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TFI International Inc. (TFII $127.07)
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TerraVest Industries Inc. (TVK $138.69)
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Zedcor Inc. (ZDC $6.50)
Q: I've held TFII for many years and it's treated me very well. But not so lately. When do you see turnaround? What might the stock be worth in 6 months and 1 year? Trying to decide whether to stick it out or sell some and hedge my position a bit. What might you suggest as a replacement that has growth potential. Dividends aren't important.l
5i Research Answer:
TFII remains a well run company and shares look like they are finding a bit of a bottom here as well. Growth is muted currently and a bit of an economic uptick is likely needed to get things moving here but we think patience will be rewarded. Over the last five years, the valuaiton has ranged from 12X earningsto iver 20X so we think shares can do well in the right environment still. If looking for a replacement, TVK or ZDC could be two industrial names that offer somewhat similar exposures but have a bit better growth/momentum.