Q: Very long time holder of TFI. It's been drifting down where it's approaching its 52 week low. Is the current environment (cycle and tariffs) pointing to further deterioration in price? I know it's hard to time market but might it be best to sell and see what happens?The outlook doesn't look all that good right now butI realize TFI is a very strong company in their field.
5i Research Answer:
We would not view TFII as a sell right now. There are concerns, but expected growth remains high, and the recent weakness we think reflects a lot of the risks already. Tariffs might not be as bad as investors expect, nor in place for long. The company of course has economic risk in general, but it has managed past cycles very well, typically buying up assets when times are bad. It really comes down to timeframe. If an investor has 3 to 4 years, we would not see it as a stock to be overly concerned about from these levels.