TFI International Inc. (TFII) Surges 8.1%: Is This an Indication of Further Gains?
TFI International Inc. (TFII) shares ended the last trading session 8.1% higher at $132.32. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 5.9% gain over the past four weeks.
TFI International inked a deal with Daseke to acquire the latter for $8.30 per share. TFI International expects the Daseke acquisition to boost its earnings per share (by atleast 50 cents per share) in 2025. TFI International will get Daseke’s 4,900 tractors, 11,000 flatbed and specialized trailers and one million square feet of industrial warehousing space following the buyout. After the news came out, BofA Securities raised the price target of TFII to $141 from $127. Naturally, TFI International's stockprice received a boost.
This company is expected to post quarterly earnings of $1.73 per share in its upcoming report, which represents a year-over-year change of +0.6%. Revenues are expected to be $1.98 billion, up 1.2% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For TFI International Inc., 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 Inc. is a member of the Zacks Transportation - Services industry. One other stock in the same industry, Avis Budget Group (CAR), finished the last trading session 1.4% lower at $182.27. CAR has returned -0.8% over the past month.
Avis Budget's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $4.38. Compared to the company's year-ago EPS, this represents a change of -58.1%. Avis Budget currently boasts a Zacks Rank of #3 (Hold).
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