TFI International is the IBD Stock Of The Day. The Canadian trucking company is in buy range after breaking a trendline.
Trucking has come into focus as supply chains remain under stress amid the pandemic. Established shipping routes have been altered as the types of products in demand change. While the supply-chain issue has weighed on consumers and some industries, it's helped lift trucking stocks.
IBD's Transportation-Truck group is ranked No. 46 out of the 197 industry groups IBD tracks. TFI International is a strong seventh in the group.
TFI International is based in Saint-Laurent, a borough of Montreal, Canada. It focuses on trucking logistics, truckload and less-than-truckload shipping. Less-than-truckload shipping is gaining in popularity as it allows multiple shipping companies to share space on trucks and can accommodate smaller loads.
TFI International serves customers in the United States, Canada and Mexico through its multiple subsidiaries.
But shipping between the U.S. and Canada has been impacted amid massive protests in Ottawa. Truckers have swarmed the capital to protest vaccine mandates and other pandemic restrictions.
TFII Stock
Shares popped 5.8% to 110.05 on the stock market today. TFII stock is in buy range after breaking a trendline as it rebounds from its 50-day line. Investors had the opportunity to buy the stock starting at 106.17 as it is within 10% of the 50-day line. It's also bouncing off the 200-day line.
Volume was above average after a heavy-trade advance for TFII stock on Tuesday.
Several other trucking stocks were leaders in late 2021, but have fallen below their 50-day lines. J.B. Hunt Transport is moving back toward that level.
TFII stock is thinly traded with only a market capitalization of $10.2 billion. But the company still has enough shares for investors to comfortably practice CAN SLIM principles. The company is traded on the Toronto Stock Exchange and went public on the New York Stock Exchange in February 2020.
TFI International's relative strength line is close to highs. The relative strength line compares a stock's performance to that of the S&P 500. When the RS line is climbing, this means it is outperforming the benchmark index. If a stock's RS line is near highs, that could mean a breakout is imminent.
TFII Fundamentals
TFII stock has a Composite and an EPS rating of 95. IBD's Composite Rating compiles scores on key fundamental and technical metrics: earnings and sales growth, profit margins, return on equity, and relative price performance. Investors should focus on stocks with a Composite Rating of 90 or higher.
TFI International reported fourth-quarter earnings and sales that beat analyst estimates late Monday. Earnings per share jumped 60% vs. a year earlier while revenue swelled 91%.
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