Advertisement
Canada markets open in 3 hours 54 minutes
  • S&P/TSX

    21,899.99
    -210.11 (-0.95%)
     
  • S&P 500

    5,123.41
    -75.65 (-1.46%)
     
  • DOW

    37,983.24
    -475.86 (-1.24%)
     
  • CAD/USD

    0.7278
    +0.0016 (+0.23%)
     
  • CRUDE OIL

    84.61
    -1.05 (-1.23%)
     
  • Bitcoin CAD

    91,686.37
    +3,196.47 (+3.61%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • GOLD FUTURES

    2,364.90
    -9.20 (-0.39%)
     
  • RUSSELL 2000

    2,003.17
    -39.43 (-1.93%)
     
  • 10-Yr Bond

    4.4990
    0.0000 (0.00%)
     
  • NASDAQ futures

    18,267.50
    +88.25 (+0.49%)
     
  • VOLATILITY

    17.05
    -0.26 (-1.50%)
     
  • FTSE

    7,956.48
    -39.10 (-0.49%)
     
  • NIKKEI 225

    39,232.80
    -290.75 (-0.74%)
     
  • CAD/EUR

    0.6826
    +0.0007 (+0.10%)
     

I Think They Can: 3 Stocks That Can Keep Chugging Higher

Arrowings ascending on a chalkboard
Image source: Getty Images.

Written by Joey Frenette at The Motley Fool Canada

The transport and logistics scene could really start to heat up again as the consumer begins spending a bit more on digital retailers again. Indeed, e-commerce has really cooled off in recent years, as inflation and macro headwinds took a hit on the average consumer’s ability to spend on nice-to-have goods (discretionaries). Indeed, most of the stuff that’s delivered tends to be nice-to-have goods rather than consumer staples.

Though I’m unsure you can count a Canadian recession out of the cards just yet, I think transport and logistics plays could continue to be resilient over the next three to five years.

ADVERTISEMENT

In this piece, we’ll look at three wide-moat firms that I think could keep on chugging higher over the coming years as they look to shrug off the past few years of turbulence.

TFI International

TFI International (TSX:TFII) is at a fresh all-time high of $201 per share at the time of writing. The incredible multi-year momentum seems to be going strong, with shares rising a whopping 13% year to date. At 25.67 times trailing price to earnings (P/E), I don’t view the less-than-load (LTL) trucker as expensive, especially when you consider the impressive management team running the show.

Over the past five years, shares of the trucker have chugged higher, soaring over 380%. That’s some serious gain for a firm that’s not at all in the artificial intelligence game. This goes to show that you don’t need high-tech for high gains.

With a market cap just shy of $17 billion, I think TFI has ample room to keep chugging higher. Sure, the business of trucking may not be exciting, but just have a look at that chart and the impressive earnings growth we’ve seen over the years!

CN Rail

CN Rail (TSX:CNR) is another magnificent transport firm that’s flirting with new all-time highs of around $178 per share. Indeed, the spike off last year’s lows has come quite suddenly. So, if you took profits during last year’s initial slump, you’re probably wondering if you should get back into the name at higher prices.

At 20.8 times trailing P/E, I still view the rail titan as pretty cheap for what you’ll get. Of course, Canada’s economy will influence CNR stock’s next course. In any case, the generous 1.9% dividend yield seems bountiful enough to hit that buy button before lower rates and capital appreciation drives the yield closer to the 1% mark.

The company has been operating quite efficiently lately, thanks in part to various initiatives put forth by its relatively new top boss. All considered, CNR stock looks like a winner poised to keep winning.

FedEx

Finally, we have FedEx (NYSE:FDX), which trades at 14.3 times trailing P/E at writing. Shares have been on a hot run of late, surging over 62% from its 2022 lows. Though the logistics firm has dealt with a harsh environment, I’d argue management is starting to get a better grasp of the climate.

As FedEx looks to add to recent strength and pole vault past modest expectations, shares may prove too cheap right here at around $240 per share.

The post I Think They Can: 3 Stocks That Can Keep Chugging Higher appeared first on The Motley Fool Canada.

Should you invest $1,000 in Fedex Corporation right now?

Before you buy stock in Fedex Corporation, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Fedex Corporation wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $17,988!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 35 percentage points since 2013*.

See the 10 stocks * Returns as of 1/24/24

More reading

Fool contributor Joey Frenette has positions in Canadian National Railway. The Motley Fool recommends Canadian National Railway. The Motley Fool has a disclosure policy.

2024