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TFI International (TFII) Moves 3.6% Higher: Will This Strength Last?

Zacks Equity Research
·2-min read

TFI International Inc. (TFII) shares soared 3.6% in the last trading session to close at $140. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.5% gain over the past four weeks.

The stock has been performing well on the bourse for quite some time, having gained 21.4% over the past six months. The company's growth-by-acquisition strategy is commendable. The robust growth shown by TFII with respect to free cash flow also bodes well.

This company is expected to post quarterly earnings of $1.70 per share in its upcoming report, which represents a year-over-year change of +6.9%. Revenues are expected to be $2.31 billion, up 28.9% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

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For TFI International, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on TFII going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

TFI International is part of the Zacks Transportation - Services industry. Hub Group (HUBG), another stock in the same industry, closed the last trading session 0.6% lower at $43.49. HUBG has returned 0.9% in the past month.

For Hub Group , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.48. This represents a change of -33.3% from what the company reported a year ago. Hub Group currently has a Zacks Rank of #3 (Hold).

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TFI International Inc. (TFII) : Free Stock Analysis Report

Hub Group, Inc. (HUBG) : Free Stock Analysis Report

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Zacks Investment Research