SIA Charts’ relative strength rankings assist investors in identifying stocks that are outperforming their peers or index benchmarks. Outperformance typically indicates positive investor expectations for a company or sector, while underperformance can signal the opposite, which is equally significant. To illustrate this, let’s review the shares of TFI International Inc. (TFII.TO). In the SIA Relative Strength Matrix Position chart, we see the shares of TFII.TO resided in our yellow neutral zone of the SIA S&P/TSX Composite Index report back in September. On September 13, 2024, the SIA Platform issued an unfavored signal for the stock at a price of $194.42. While the shares made a brief attempt to recover into the neutral zone, the move lacked sufficient momentum. The stock was unable to reclaim its position in the green favored zone and has since retreated back into the red unfavored zone.
On February 19, 2025, the company reported its fourth quarter earnings and full year results which proved to be quite disappointing as the company reported fourth quarter net income of $88.1 Million which was well below $131.4 million in Q4 of 2023 while adjusted net income of $101.8 million compares to $147.0 million in Q4 2023. As well, they issued Q4 diluted earning per share of $1.03 compared to $1.53 in Q4 2023, while their adjusted diluted EPS of $1.19 was much lower than the $1.71 reported in Q4 2023. At that time the shares plummeted to the bottom of the red unfavored zone and still has not recovered even slightly. Today, the shares are at $119.29 which represents a 39% drop since the SIA AI issued an unfavored signal. This exemplifies the power of SIACharts’ Platform and helping you avoid significant portfolio destruction. What is most impressive is the platform indicated deteriorating money flows well before the disappointing earning release in February.
Let’s dive in and see what the chart looks like today. In looking at the attached Candlestick chart, we see that there was a classic triple top pattern back in April, July and December of last year where the shares bump its head at the $215.00 level three times and could not break above that triggering an early warning sign. When the earnings release in February came out, the shares broke prior support at the $180.00 handle and the bottom fell out of the shares. Currently the shares are mired in the $120.00 area trying to find support. In looking at the chart, we may see support at $115.00 which was the low back in October of 2022 and below that, the low in June 2022 at the $90 handle. To the upside, the shares may encounter resistance at about $135.00.
In looking at the Point and Figure chart at a 2% scale, we see a similar story where the shares bumped its head at the $220.00 level twice and the bottom fell out when the shares broke below $180.60. The SIA unfavored signal occurred in September at $194.42 right between the two peaks in April and December of last year. There looks to be minor near term support at $116. 83 but below that, the next level of support is potentially all the way down to $90.31. If the shares manage to find traction, resistance is at its 3 box reversal at $128.99 and, above that, $136.88. With a SMAX score of 0 out of 10, TFII.TO is showing no strength whatsoever against all asset classes.
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