Buy this “down in the dumps” Canadian stock, fund manager says

Barry Schwartz, president and chief investment officer at Baskin Wealth Management, told BNN Bloomberg’s Market Watch on Sept. 2 that TFI International (TFI International Stock Quote, Chart, News, Analysts, Financials TSX:TFII) is poised to benefit from easing trade uncertainty.

“TFI International is down in the dumps,” Schwartz said, pointing to the trucking and logistics provider’s exposure to tariffs earlier this year. “This is the worst company you want to own when there’s a tariff war. If there’s tariffs happening and no one knows what they’re going to be, they’re not going to produce any goods, they’re not going to ship any goods from China or other countries. And that’s exactly what happened in April and May.”

Montreal-headquartered TFI operates across the U.S., Canada and Mexico through its subsidiaries, serving the less-than-truckload, truckload and logistics segments.

Schwartz said the outlook has improved as tariff clarity emerges, noting that the Supreme Court may yet rule certain tariffs illegal.

“It’s really positive for TFI,” he said. “Its last quarter wouldn’t say that things are improving, but it still produced a significant amount of earnings and free cash flow. And while it’s waiting for the economy to recover, the trucking business to recover, it’s been aggressively buying back its shares and reducing costs very nicely.”

He added: “We see this company in a normal environment doing US$8.00 to US$10.00 of earnings and it’s trading at a really reasonable valuation if you believe things can recover.”

According to MarketBeat, 14 analysts rate the stock “Buy,” three “Hold,” and one “Sell,” with a consensus target price of $149.79. Shares have climbed 132% over the past five years.

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