Q: Hi - what do you make of a transport like TFII moving up strongly despite gas prices rising in step? Would you be a buyer here?
5i Research Answer:
TFII has moved as a cyclical play, and as a stock that will not be vulnerable to AI disruption. It is now up 21% YTD. The last quarter was solid. We like it still, and frankly it probably never should have gotten so cheap in the downturn. EPS growth is expected to be in the 30% range this year. We would be comfortable buying a position, with a view that it is cyclical, and margins could be squeezed by higher fuel prices in the short term.