Hi Jay,
For starters - I own both GSY and TFII and while their current run-ups may seem unsustainable, one needs to look at valuations. For a number of years, both GSY and TFII were chronically undervalued - which is one of the reasons both were on our bull lists. GSY was one of the first Bull List picks when StockTrades Premium was launched 3 years ago.
What is happening now, is that the markets have finally recognized that both of these companies were significantly undervalued and their valuations are now playing catchup.
Today, GSY is trading at only ~14 times forward earnings. While this is above historical averages, this is far from being expensive. Especially for a company that is expected to grow earnings in the high teens over the next few years. Will it return at the same level it has in the past couple of years. Don't count on it. That valuation gap has closed and it is certainly not as cheap as it once was. That being said, seeing it grow inline with earnings is entirely realistic. That would still lead to pretty solid returns and a dividend that is growing at a 25%+ clip.
TFII is another one that well positioned to continue delivering - just not inline with this past year. The company is fairly valued here with a P/E of around 21 which is slightly above industry averages. On a forward basis, that drops to 18.75 and once again - this isn't exactly expensive. The company is expected to grown earnings at a 30% clip and revenue by the high teens over the next few years. There are excellent growth rates and I'd have zero issues paying for TFII at these levels with this type of expected growth.
All this to say - I don't think they are bloated. Sure, they aren't the screaming bargains they once were but that doesn't mean they would not make excellent investments. GSY will be more volatile and is vulnerable to changes in regulations around bloated interest rates, but this has been a risk for years. It will also see weakness if the economy stalls - but that is superficial as GSY has proven more than capable of navigating that type of environment. TFII is also vulnerable to a slowing economy, but it has been making some pretty astute acquisitions and is quickly becoming a leading north american trucking company.
Mat