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Earnings Estimates Moving Higher for TFI International Inc. (TFII): Time to Buy?

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Investors might want to bet on TFI International Inc. (TFII), as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.

The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this company, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

For TFI International Inc. Strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:

12 Month EPS

Current-Quarter Estimate Revisions

The company is expected to earn $1.29 per share for the current quarter, which represents a year-over-year change of +37.23%.

Over the last 30 days, five estimates have moved higher for TFI International Inc. compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 17.87%.

Current-Year Estimate Revisions

For the full year, the company is expected to earn $4.55 per share, representing a year-over-year change of +37.88%.

There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, seven estimates have moved up for TFI International Inc. versus no negative revisions. This has pushed the consensus estimate 18.78% higher.

Favorable Zacks Rank

The promising estimate revisions have helped TFI International Inc. earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

Investors have been betting on TFI International Inc. because of its solid estimate revisions, as evident from the stock's 20.9% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.


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

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