The annoying thing about a good stock-market dip is that it rarely sends a calendar invitation. Shares fall, investors decide they’ll wait for “a little more weakness,” and suddenly half the discount has disappeared while they’re still admiring their cash balance.
That can get expensive. Suppose a stock falls about 17% from $234 to $194. Investors might think they can wait for another drop. Yet if the business keeps improving and the shares return to $234 instead, a buyer at $194 would already be sitting on roughly a 20% gain.
That’s the strange math behind declines. A 17% drop requires a larger percentage gain to get back to where it started. It’s also why I wouldn’t spend too much time hunting for the absolute bottom. During a stock market correction, the more useful question is whether the company’s future earnings power looks better than the current share price suggests.
With $1,000 available today, there’s one TSX stock I’d put near the top of that list.
Source: Getty Images
TFII
TFI International (TSX: TFII) is one of North America’s largest transportation and logistics companies. It moves freight through less-than-truckload, truckload and logistics operations across Canada, the United States, and Mexico. That doesn’t sound terribly exciting until you remember what trucks actually carry.
TFII stock transports everything from industrial equipment to high-value cargo, and one newer opportunity has become particularly interesting: data centres and power grids. Through its SFI operations, TFII stock generated $43 million in data-centre-related revenue during 2025. Revenue accelerated from roughly $8 million in the first quarter to more than $15 million by the fourth. Broader electric-grid-related revenue surpassed $110 million.
Servers don’t magically appear inside giant warehouses. Transformers, electrical equipment and construction materials have to get there somehow, often using the specialized heavy-haul transportation TFII already operates. That gives TFII stock a way to benefit from the artificial intelligence (AI) infrastructure boom without trying to guess which chatbot wins.
Into earnings
The broader freight business is helping too. Second-quarter revenue increased 12% year over year to US$2.3 billion, while operating income jumped 29% to US$220.4 million. Adjusted earnings per share (EPS) climbed an even stronger 38% to US$1.85. Free cash flow rose 11% to US$202.1 million.
Those numbers suggest management is squeezing more profit from the business while acquisitions and improving market conditions add growth. Truckload operating income was particularly strong, rising 50%. Less-than-truckload and logistics operating income also posted double-digit increases. For investors searching among Canadian value stocks, the opportunity comes from the share price lagging some of that improvement.
Earning even more
TFII stock traded around $194 at writing, roughly 17% below their 52-week high of $233.85. With $1,000, an investor could buy five shares and still have a few dollars to spare.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | ANNUAL DIVIDEND | ANNUAL TOTAL PAYOUT | TOTAL INVESTMENT | 52-WEEK HIGH | PROJECTED VALUE + DIVIDENDS |
|---|---|---|---|---|---|---|---|
| TFII | $194.00 | 5 | $2.65 | $13.25 | $970.00 | $233.85 | $1,182.50 |
That isn’t a prediction that TFII will immediately revisit its high. It simply shows how quickly today’s discount could look less generous if the recovery continues.
Plus, TFII stock remains a cyclical company. A weaker North American economy could reduce freight volumes and pricing, while its U.S. less-than-truckload operations still have room for improvement. Acquisitions also bring integration risk. Furthermore, shares have already rebounded dramatically from last year’s lows, so this isn’t some forgotten $5 lottery ticket hiding underneath the sofa.
Bottom line
That said, I’d still rather buy a good company about 17% below its high while operating income is climbing 29% than wait around hoping investors hand me another bargain.
The next dip could certainly be bigger. If earnings keep moving in this direction, however, I suspect investors waiting for the perfect entry point may instead watch this one get smaller.
