Can these industrial stocks be examined? - Kalkine Media

July 27, 2023 05:08 AM EDT | By Akanksha Vashisht
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Summary

The S&P/TSX Capped Industrial Index increased by 0.65% and the S&P/TSX Composite Index gained 0.05% on July 26, 2023.

TFI International Inc., a logistics and courier services provider, rose 23.86% on a YTD basis as on Wednesday.

WSP Global Inc., a construction services provider, gained 14.08% on a YTD basis as on July 26, 2023.

The industrial sector perpetually observes a robust momentum as construction and production services are almost always in demand. Some of the largest corporations across the globe belong to the industrial sector.

These stocks also rely on materials sector, which is a major input source for them. Thus, a booming industrial sector could potentially indicate an influx of capital into the materials sector.

The S&P/TSX Capped Industrial Index increased by 0.65% on July 26, 2023. Meanwhile, the S&P/TSX Composite Index gained 0.05% on July 26, 2023.

On that note, let us examine two industrial sector stocks that have reported steady stock price momentum on a YTD and monthly basis.

TFI International Inc. (TSX: TFII)

TFI is a logistics and courier services provider that also operates its the truckload and less-than-truckload segments. It has a market cap upwards of CA$14.5 billion.

The logistics company reported an operating income of US$166.4 million in Q1 2023, compared to US$219.8 million in Q1 2022. The company’s total revenue was US$1.85 billion and net income was US$111.9 million in Q1 2023.

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TFI’s stock has seen sustained momentum, with the stock surging 23.86% on a YTD basis as on Wednesday. The stock’s monthly gain as on July 26, 2023, was 22.25%, while its past year gain stands at 45.87%.

Based on Wednesday’s closing price of CA$169.57, the stock has a P/E ratio of 14.17x. TFI paid its shareholders a dividend of US$ 0.35 in July, 2023.

WSP Global Inc. (TSX: WSP)

WSP is a construction services provider that caters to a wide range of clients from various industries. The company also offers advisory services alongside construction. Its market cap stands at CA$22 million.

For Q1 2023, WSP Global reported revenue of CA$3.49 billion and a net revenue of CA$2.67 billion, which were up 28.7% and 27%, respectively compared to Q1 2022. The company’s adjusted EBITDA for the period was CA$413.3 million in Q1 2023, which marked an uptick of 27.3% over Q2 2022.

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At the same time, WSP’s stock price momentum has remained intact. The stock gained 14.08% on a YTD basis as on July 26, 2023. The stock’s one month gain by the end of trade on Wednesday was 7.17%. Compared to the previous day’s close, WSP closed Wednesday 0.73% higher.

The stock has a P/E ratio of 48.83x based on Wednesday’s closing price of CA$180.33.


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