Thursday, December 3, 2015

3 Undervalued Stocks to Buy Today | The Motley Fool Canada

3 Undervalued Stocks to Buy Today | The Motley Fool Canada: "TransForce Inc. (TSX:TFI) is one of the largest providers of transportation and logistics services in North America, with operations across Canada and the United States.

At today’s levels, its stock trades at just 12.8 times fiscal 2015’s estimated earnings per share of $1.94 and only 12.1 times fiscal 2016’s estimated earnings per share of $2.05, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 21.9 and its industry average multiple of 22.8.

I think TransForce’s stock could consistently trade at a fair multiple of at least 15, which would place its shares upwards of $30 by the conclusion of fiscal 2016, representing upside of more than 20% from current levels.

In addition, the company pays a quarterly dividend of $0.17 per share, or $0.68 per share annually, giving its stock a 2.7% yield."



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