1 Elite Canadian Stock Down 34% to Buy and Hold Forever

Although short-term economic uncertainties and industry shifts may temporarily weigh on even the strongest stocks, their solid fundamentals often help them recover more quickly. That’s exactly why a major pullback in quality stocks doesn’t always mean trouble. In fact, it may open the door for investors to enter at a better price and hold for years without worrying about daily market noise.

One such stock, TFI International (TSX:TFII), is currently trading well below its 52-week high. However, it continues to strengthen its core operations, return billions in cash to shareholders, and build a solid foundation for long-term earnings growth. In this article, I’ll talk about why this transportation giant still looks like a really attractive Canadian stock to buy now and forget about for a long time.

A beaten-down Canadian stock to buy and hold forever

To put it simply, TFI International is a North American freight and logistics company headquartered in Saint-Laurent. It operates through three main segments: less-than-truckload (LTL), truckload (TL), and logistics. As of now, its shares trade at $143.77 apiece, with a market cap of $11.8 billion. It also offers a quarterly dividend with a 1.8% annualized yield at the current market price.

While TFI stock is down 34% from its 52-week high, it has surged over 21% in the past month, signalling a rebound from earlier weakness. The recent uptick in the stock reflects renewed investor interest, possibly driven by the company’s ongoing buybacks and dividend hikes.

A closer look at its recent financial performance

Let’s now break down what’s been going on behind the scenes at TFI over the last few quarters. TFI’s recent dip could mainly be attributed to softer freight demand across business units. In the third quarter, the company’s total revenue fell 10% YoY (year over year) to US$1.97 billion, mostly because of reduced volumes. As a result, its adjusted quarterly EBITDA (earnings before interest, taxes, depreciation, and amortization) also dropped by nearly 14% YoY to US$305.4 million. Segment-wise, TFI’s revenue fell 11% in LTL, 7% in TL, and 14% in logistics.

Yet, the company still managed to deliver US$199.4 million in free cash flow in the latest quarter and over US$570 million in the first nine months of 2025. It used that to fund share buybacks and dividends, including a 13% dividend increase this year and another 4% raise approved for the next payout.

Long-term fundamentals remain strong

So, while TFI International’s latest results may be under pressure due to industry-wide pressures, the company continues to expand through targeted acquisitions. For example, its recent acquisition of Daseke helped boost revenue in the truckload segment last quarter. Meanwhile, TFI is also maintaining an asset-light approach in logistics and shifting focus toward higher-margin, higher-return segments.

Interestingly, TFI’s another key strength is its capital discipline. It’s been aggressively repurchasing shares, which reduces its share count and supports future earnings-per-share growth. In fact, it repurchased 2.6 million shares as of September 2025, and its board renewed approval to buy back up to 10% of its float.

Despite weaker operating conditions, TFI’s ability to generate stable cash flow, raise dividends, and remain opportunistic with new acquisitions clearly shows why it is a solid buy-and-hold stock for long-term investors, especially after the recent dip.

The post 1 Elite Canadian Stock Down 34% to Buy and Hold Forever appeared first on The Motley Fool Canada.

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More reading

• 1 Canadian Dividend Stock Down 33% Every Investor Should Own
• The Best TSX Stocks for Canadians to Buy With $1,000 on Hand
• Lazy Investor: This Dividend Growth Stock Deserves a Permanent Place in Your TFSA
• 2 Top Canadian Stocks I’d Happily Buy and Hold Forever (and Ever)
• 5 Reasons to Buy and Hold This Canadian Stock Forever

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends TFI International. The Motley Fool has a disclosure policy.