1 Outstanding TSX Stock Down 33% to Buy and Hold Forever

Canadians who have been investing in the stock market for a while are no strangers to market pullbacks temporarily weighing on even some of the best blue-chip stocks. Newer investors typically panic and start selling off shares to protect their capital. Seasoned Fools, on the other hand, leverage the market pullbacks as opportunities to find good investments in the market at a bargain.

After hitting new all-time highs, the S&P/TSX Composite Index is down by 1.3% from its December 11 level at the time of writing. The most recent pullback in the Canadian benchmark index has left several high-quality TSX stocks following suit.

Stocks with underlying businesses possessing solid fundamentals are well-positioned to recover well. Today, I will discuss a stock that is currently down and may be an undervalued holding to add to your self-directed investment portfolio.

TFI International

A major pullback can seem alarming, especially when it comes to high-quality stocks. However, it can be a good time to invest in the stock for those who can stomach the day-to-day noise in the market and see beyond it. TFI International Inc. (TSX:TFII) is one such stock that might be ripe for the picking.

TFII is a $12 billion market-cap company headquartered in Saint-Laurent that is a leader in the logistics and transport industry across North America. The company has operations in the US, Canada, and Mexico through various subsidiaries. Its three primary segments include Logistics, Less-Than-Truckload (LTL), and Truckload (TL).

As of this writing, TFII stock trades for $145.58 per share, down by 33% from its all-time high in 2024, and around 32% from its 52-week high. Despite being considerably cheaper, the business itself is doing well. The company is returning billions in cash to shareholders and has positioned itself well for substantial long-term growth.

A stock to buy and hold forever

The Canadian freight and logistics provider might be down significantly from its all-time and 52-week high, but it has not been doing poorly on the stock market. Amid the resurgence in the stock market over recent weeks, TFII stock has seen its share price climb by around 28%, from its level on November 20, 2025.

TFII stock also pays investors US$0.47 in quarterly dividends, translating to a 1.8% annualized dividend yield. The most recent uptick in share prices comes along with the holiday season rush that has spiked demand for freight and logistics services. The company’s dividend hikes and ongoing share buybacks might have also contributed to the surge in share prices.

The dip in freight demand last year brought share prices down. The stock also saw its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) drop by 14% in the third quarter of this fiscal year compared to the same period last year. Despite that, the company delivered more than US$570 million in free cash flow during the first nine months of the year and almost US$200 million in the latest quarter alone.

Foolish takeaway

Industry-wide pressures will likely lead to more volatility in share prices in the short to medium term. However, the company’s targeted acquisitions are aiding its expansion efforts and strengthening its business. The company’s ability to generate stable cash flows, raise dividends, and continue expanding through acquisitions shows that it can be an exceptional investment right now.

The post 1 Outstanding TSX Stock Down 33% to Buy and Hold Forever appeared first on The Motley Fool Canada.

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More reading

• Before the Clock Strikes Midnight on 2025 – TSX Transportation & Logistics Stocks to Buy
• 1 Elite Canadian Stock Down 34% to Buy and Hold Forever
• 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

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